webinar - the brazilian o&g industry + rio oil & gas 2020 · brazilian market: 10-year...
TRANSCRIPT
Rio de Janeiro, 18 February 2020
Webinar - The Brazilian O&G Industry + Rio Oil & Gas 2020The webinar will begin at 14:00 (UK)
11:00 (BR)
Agenda
Welcome and IntroductionsClarisse Rocha, EIC | Head of Americas
Rio Oil & Gas 2020 – Benefits of exhibiting in the UK PavilionClarisse Rocha, EIC | Head of Americas
Brazilian Oil & Gas State of Play Cristina Pinho, IBP | Secretary General
An Overview of Oil and Gas Projects in BrazilPietro Ferreira, EIC | Senior Regional Analyst
Question & Answer Session
What is the EIC?
➢ EIC ➔ Energy Industries Council
➢ Est. in 1943, in South America since 1999
➢ Non-profit energy trade association
➢ Helping suppliers to grow and export
➢ 60 staff; unique international hubs
➢ 700 members, approx. 200 in South America
How do we support members?
➢ EICDataStream
• Global database of CAPEX projects
➢ EICAssetMap
• New O&M database mapping energy assets, all sectors
➢ EICAssetMap
• Database of UK companies involved in the energy sector
➢ 130 events p.a.
➢ Trade delegations
➢ EIC pavilions at major trade shows
➢ Launchpad offices
➢ Supporting Petrobras Registration
Training Workshops & Events
EIC Workshops:
• Understanding Local Content
• An Introduction to Gas Turbines
• An Introduction to Steam Turbines
• The Fundamentals of FPSOs
• The Fundamentals of Subsea
• The Fundamentals of Oil & Gas
• The Fundamentals of Power
Next Events:
• 19 Feb – EICDatastream Training
• 05 Mar – Recent legislation changes: How do they
impact the Oil and Gas supply chain?
• 12 Mar – Understanding Procurement in Petrobras:
Make the most of opportunities with Petrobras
• 24 Mar – Internationalisation in the Oil and Gas sector
with Equinor – in partnership with Abimaq
• 02 Jun – Offshore Construction Trade Delegation to
join the UK Energy in Brasil Showcase organised by DIT
RIO OIL & GAS 2020 – UK Pavilion
Benefits of participation
• Prime Location for the UK group (just by Petrobras)
• Enhanced networking opportunities -Meet key local industry partners and decision makers. UK Networking Reception.
• Intelligence -Industry experts and from EIC and DIT, with pre event data to help you identify upcoming regional projects.
• Enhanced Promotion of the group through publications/press releases and UK brochure
• High level UK branded stand design. Innovative and modern stand design, high level branding and fully furnished stand.
• Support - Dedicated event staff. Expert EIC Event Manager, stand designer and freight partner on hand throughout.
• 34,200+ visitors• 540+ exhibitors from over 22 countries
In partnership with:
For further information and to apply, contact:
Chloe Gonzalez, Overseas Events [email protected]+44 (0) 207 091 8616
RIO OIL & GAS 2020 – UK Pavilion
Floorplan
RIO OIL & GAS 2020 – UK Pavilion
Costs
Shell scheme stand package
• Hard Walls• Fascia name board• Lighting and power outlet• Round table & 3 chairs• Lockable counter• Literature rack• Wastepaper basket• Stand cleaning• Overnight security• On-site Wi-Fi access
10.5m2£8,925
15m2£12,750
Visitor pass package
• Exhibitor Pass• Access to UK Lounge• Literature in lounge area• Business card distribution • Entry in UK Brochure• Access to all UK Pavilion activities
£500/person
Networking Reception Sponsor
• Branding throughout the reception• One full page ad within UK Brochure• Sponsor logo throughout all marketing material• Complimentary tickets to invite guests• Sponsor able to make speech at reception• Plus more…
£3,000
In partnership with:
For further information and to apply, contact:
Chloe Gonzalez, Overseas Events [email protected]+44 (0) 207 091 8616
State of Play
➢ Upstream
• Key FPSO projects by Petrobras and IOCs
• Independent players active in smaller projects
• New players acquiring mature assets from Petrobras
➢ Midstream
• LNG import projects associated with power plants
• Major subsea pipelines (rotas) under construction and being licenced
• Gas processing plants to support increasing output from offshore fields
➢ Downstream
• Refinery upgrades announced by Petrobras
• Small-scale refineries announced
Source: EICDataStream
0
20000
40000
60000
80000
100000
120000
140000
0
10
20
30
40
50
60
70
80
Upstream Midstream Downstream
O&G Projects in Brazil
Number of Projects CAPEX (million USD)
0
20
40
60
80
100
120
140
Oil & Gas Projects in Latin America
Key Upstream Projects (FPSOs already awarded)
Source: EICDataStream
Key Upstream Projects (near term projects)
Source: EICDataStream
Other Upstream Projects
Source: EICDataStream
Key Midstream Projects
Source: EICDataStream
Key Downstream Projects
Source: EICDataStream
Final remarks
➢ Blocks awarded in recent bidding rounds to unlock new opportunities in coming years
➢ Modifications, maintenance and operations segment also attractive
➢ Gas pipelines: EPE sees potential for US$4.2bn investment in new projects
➢ New LNG import projects associated with power plants have been announced
➢ Potential investment in downstream facilities to satisfy fuels demand
Thank YouEIC South America:
Av. Rio Branco, 89 – 26 andar
Rio de Janeiro, Brazil
Tel: +55 21 3265-7400
E-mail: [email protected]
Clarisse Rocha
Head of Americas
Pietro Ferreira
Senior Regional Analyst, South America
Q & A session
Brazil: O&G sector business opportunitiesEIC Webinar
February 2020
Disclaimer
The content of this publication is forinformation only and uses public data fromthird party institutions. IBP developed itsanalysis under the premise of reliability ofdata sources and all analysis were madeusing the best technique among theavailable information. In this sense, theInstitute is not responsible for any problemswith the completeness or accuracy of thepublic data provided by the sourcesmentioned, as well as for any effects arisingfrom their use and interpretation. Anyintellectual property right related to theinformation presented herein, as well as anyresponsibility for its content, lies with itsrespective authors and owners.
Most of largest offshore discoveries were recentlymade in Brazil
Deepwater produced, discovered and yet-to-find volumes 2018, Billion boe
Source: IBP with data retrieved from IHS and IEA
High Productivity
Most of the recent largest discoveries were made in Brazil’s deepwaters
Great outlook
According to IEA, Brazil will be responsible for the second biggest increase in oil production through 2030, behind USA only.
0 20 40 60 80 100 120 140
Canada
UK
Guyana
Mexico
Norway
Angola
USA
Brazil
Volumes produced Remaining proven and probable Yet-to-find volumes
3
+45%
83% and 63% of the Brazilian oil and
gas proved reserves, respectively, are
in Rio de Janeiro
If it were a country, Rio de Janeiro
would have the 17th largest proven oil
reserves in the world, ahead of
countries like Angola, Norway and
Mexico
Source: IBP with data retrieved from ANP and BP
Mexico
Rio de Janeiro
Natural Gas
Oil
Natural Gas
Oil
11.2
1.4
1.2
7.7
The proven reserves of Rio de Janeiro and MexicoBillion boe, 2018
The proven reserves of Rio de Janeiro are bigger than Mexico’s
4
Campos and Santos basins: Bidding Round Zero1998
Campos and Santos basins: after the return of bidding rounds2018
1 million bbl/day 3,6 millions bbl/day
Source: IBP with data retrieved from ANP
More than 20 years after the Oil Act, it’s evident the players diversification in upstream and the expansion of offshore
infrastructure
Market opening also increased the number ofplayers
5
Note: 8th Round cancelled. No offshore areas offered in Rounds 10 and 12.Source: IBP with data retrieved from ANP
Return tocompetition
GapConcentrationCompetiton
Offshore acquired areaThousand km²
A brief history of Brazil´s O&G sector
54.660
37.847
46.266
14.669
21.254
36.811
7.735
13.419
36.922
1.513
14.940
22.786
16.238
1st Round 2ndRound
3rdRound
4thRound
5thRound
6thRound
7thRound
9thRound
11thRound -1st PSC
13thRound
14thRound -2nd/3rd
PSC
15thRound -4th/5th
PSC
16thRound -6th PSC
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Petrobras Others
6
1) 8th Bidding Round was cancelled 2) Open Acreage Round not included3) US$ 1 = R$ 4Source: IBP with data retrieved from ANP
Return to competitionGapConcentrationCompetition
Signature bonuses paid per year – Concession and Production sharingUS$ Million
The average bonus paid between 2017-19 is 23 times higher than 1999-2008
Regulatory improvements, especially in the last three years, have contributed to increase the collection of signature bonuses. Proof of the
growing relevance of Brazilian assets in the global O&G sector perspective. In 2019, in addition to the collection of more than US$ 3,4
billion in bonuses, another US$ 17 billion were raised with the Transfer of Rights Surplus Production Sharing Bidding Round.
AVERAGEUS$ 3,495millions
80 117 149 23
7
166 271
-
527 22
- - - -
4.497
-
30
-
2.498
4.496
3.491
1st Round 2ndRound
3rdRound
4th Round5th Round6th Round7th Round 9th Round 10thRound
11th/12thRound -1st PSC
13thRound
14thRound -2nd/3rd
PSC
15thRound -4th/5th
PSC
16thRound -6th PSC
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
AVERAGEUS$ 151 millions
7
More than
US$ 7 bi in signature bonuses
61%Majors
33%NOCs
6%Others
Note: (*) Data until September 2019.Source: IBP with data retrieved from Wood Mackenzie
Private companies were responsible for 67% of the signature bonuses paid from 2016 to 2018. In 2019, 97% of the signaturebonuses paid in the world were from Bidding Rounds in Brazil
Signature bonuses by company type2016-2018, %
Total signature bonuses2019, US$ Million
Signature bonuses by country between 2016 and 2018US$ Million
Brazil has captured 77% of signature bonuses payed between 2016-18
5506
771586
195 119
Brazil Mexico USA Russia Egypt
% 77% 8%11% 3% 2%
TOTAL: 7.177
72%81%
97%
28%19%
3%
2017 2018 2019 YTD
Rest of the World
Brazil
*
8
Brazilian market: 10-year investments forecast in energy supply
Source: IBP with data retrieved from EPE, 2019 – “Plano Decenal de Expansão de Energia” (PDE).Note: ¹Data considering an exchange rate of R$ 3,87 / US$.
US$ 0,6 trillion in investments will be needed to expand the energy supply in Brazil. 80% of that amount forecasted to the O&G and biofuels sectors, only.
Final energy consumption in BrazilMtep
247 278
2019 2024
318
2029
Total
CAGR2,6%
Energy investments forecast¹US$ Billion (2020-2029)
Exploration & production 448,6
Liquid biofuels supply 16,5
Electricity supply 117,8
Petroleum products supply 9,6
Natural gas supply 8,5
9
2-year bidding rounds plan
Source: IBP with data retrieved ANP.
2020 2021
10
21-24 SeptemberRio de Janeiro
Energy for a changing world
RIO OIL & GAS 2018LAST EDITION FUGURES
+ de 500EXHIBITORS
42.200ATTENDEES
(23% MORE THAN 2016)
39.000 M2
SQM
+ de 200SPEAKERS*
5.000
DELEGATES
+ de 1.000PRESENTATIONS*
33
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10PARALLEL
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*Plenary, Special Sessions and topical luncheon** Counting on technical papers, plenary sessions, special sessions, topical luncheon and parallel events
SOMA
Tech Village
OnshoreForum
Petroleum Club
Certification Forum
Young Arena
Business Round
Knowledge Arena
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Arena
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RIO OIL & GAS 2020
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14