Oil and Sustainable Development – Petrobras and the development of local services and manufacturing industries
 

Oil and Sustainable Development – Petrobras and the development of local services and manufacturing industries

on

  • 980 views

 

Statistics

Views

Total Views
980
Views on SlideShare
968
Embed Views
12

Actions

Likes
0
Downloads
16
Comments
0

2 Embeds 12

http://www.petrobras.com.br 6
http://www.investidorpetrobras.com.br 6

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Oil and Sustainable Development – Petrobras and the development of local services and manufacturing industries Oil and Sustainable Development – Petrobras and the development of local services and manufacturing industries Presentation Transcript

    • PETROBRAS Oil and Sustainable Development Petrobras and the development of local services and manufacturing industries Raul Adalberto de Campos Investor Relations Executive Manager November, 2006 00 0
    • PETROBRAS The presentation may contain forecasts about future events. Such forecasts merely reflect the expectations of the Company's management. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein. The Company is not obliged to update the presentation/such forecasts in light of new information or future developments. Cautionary Statement for US investors The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as oil and gas resources, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. 1 11
    • PETROBRAS Petrobras already among largest publicly traded companies Proven reserves (SEC - billion boe) – Dec. 2005 Oil and gas production (million boe) - 2005 ExxonMobil 22,4 ExxonMobil 1.484 Lukoil* 20,1 BP 1.448 Petrochina* 18,5 Shell 1.267 BP 17,6 Petrochina* 945 Yukos* 13,0 Chevron Texaco 919 Chevron Texaco 12,1 Total 908 11,8 7th Petrobras 809 Petrobras ConocoPhillips 660 7th Shell 11,5 Total 11,1 Yukos* 624 ConocoPhillips 9,4 Lukoil* 614 ENI 6,8 ENI 593 Statoil 427 Statoil 4,3 Repsol 416 Sinopec* 3,8 Sinopec 309 Repsol 3,3 Reserve life (years) – Dec. 2005 Refining capacity (thousand bpd) - 2005 Lukoil* 32,7 XOM 6.343 Yukos* 20,8 RDS 4.026 Petrochina* 19,6 Sinopec 2.998 ExxonMobil 15,1 BP 2.747 Petrobras 14,6 TOT 2.708 ConocoPhillips 14,2 5th COP 2.275 Chevron Texaco 13,1 PetroChina 2.202 Sinopec 12,3 CVX 2.195 Total 12,2 Petrobras 2.114 9th BP 12,2 Yukos 1.223 ENI 11,5 Repsol 1.175 Statoil 10,1 Lukoil 1.139 Shell 9,0 ENI** 524 Repsol 8,0 Statoil 296 2 Source: Evaluate Energy and Company Reports 22
    • PETROBRAS Vertical Integration Comparison Majors Average * 4,793 3,176 2,735 National Oil Companies Average ** 1,579 1,630 4,329 2011: Petrobras New Refinery will add 200 thous. bpd capacity 2,296 2010: Pasadena Refinery revamp concluded – processing 70 2,114 thous. bpd of heavy oil Product Sales (thous. bpd) 2,217 Refining (thous. bpd) 3,400 Production (thous. boed) Year 2011 3 * Majors: BP, Exxon, Total, Royal Dutch Shell, Chevron, Conoco and Repsol-YPF3 ** NOC: PEMEX, PDVSA, Saudi Amraco, KPC, Pertamina and Sonatrach 3
    • PETROBRAS Increasing Participation of the Oil Chain in Brazilian GDP 10,0% 9,1% 9,0% 8,0% 7,7% 7,0% 6,8% 6,5% # 6,0% 6,0% 6,1% 5,3% 6,0% 5,0% 5,5% 4,3% 4,7% 4,0% 3,1% 4,0% 2,9% 2,8% 2,9% 3,0% 3,0% 2,0% 2,2% 2,1% 2,0% 1,8% 1,0% 1,3% 1,4% 1,3% 1,3% 0,7% 0,9% 0,7% 0,0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Petrobras Others - Oil Chain Total oil chain • From 1996 to 2004 the oil stake in Brazilian total GDP increased more than 200% 4 Source: Brazilian National Petroleum, Natural Gas and Biofuels Agency (ANP) # Petrobras estimate from IPEA data 44
    • PETROBRAS Investment Plan reflects integrated global expansion Business Plan 2007-2011 US$ 87.1 billion 56% 14% 49.3 U S$ 12 49,3 .1 bi 31.0 23,0 US$ 75.0 bi 1.8 1,8 2.3 3.3 23.0 3% 2,2 3,3 7,5 26% 7.5 1.0 3% 1.0 4% 12.4 9% 86% E&P Downstream G&E Brazil International Petrochemical Distribution Corporate Note: Includes International 5 55
    • PETROBRAS National Content 2007-11 Business Plan indicates that 66% of CAPEX related to Brazilian projects will be directed towards the domestic market, representing an average of US$ 10 billion/year injected into this market. US$ billion Domestic Domestic Market Domestic Investment Purchases 2007-11 Content (%) 2007-11 Business Area E&P 40.7 22.0 54% Downstream 23.1 18.1 78% G&E 7.2 6.3 87% Distribution 2.2 2.2 100% Corporate 1.7 1.4 80% Total 75.0 49.9 66% 6 66
    • PETROBRAS Value Added and Jobs Value Added Represents on average 10% of Brazilian GDP. R$ Billion Annual Average Value added by: 2007-11 Petrobras in Brazil 117 Productive Chain - Investments 46 Productive Chain – Operational expenses 53 Total Value Added 216 Job Creation The investment plan from 2007-2011 will demand on average a total of 840 thousand jobs in Brazil… Annual Average Jobs (Thousand) 2007-11 Direct Jobs 225 Indirect Jobs + Income Effect 613 Total Jobs 838 ...peaking in 2007 with more than 970 thousand jobs, considering direct, indirect and income effect. 7 77
    • PETROBRAS Suppliers – Transparency • In Petrobras Suppliers Databank there are: • 40 thousand companies that produce goods without specification • 30 thousand that supply services without specification; • 2 mil that manufacture specific equipment • 2 mil that provide specific services; • Since the end of 2003, Petrobras does electronic auctions via Internet; • In 2005, Petrobras performed 73 thousand electronic auctions, totaling 55% of the expenditure with goods in the year; • This service will be expanded to include transactions with medium and small suppliers, as well as service suppliers; • The electronic auction databank includes 14 thaousand companies. • Goal: in the next 2 years 85% sales volume though the internet. 8 88
    • PETROBRAS Supplies Qualification Requirements Requirements for pre-qualifying suppliers Reference: ACCORDING TO THE Quality: ISO 9.001 GOOD OR SERVICE Social Resp. : SOME REQUIREMENTS ETHOS QUALITY & ARE OBLIGATORY SOCIAL TECHNICAL RESPONSIBILITY HSE ECONOMIC Reference: LEGAL SOME ATTRIBUTES ARE Environmental: ISO REQUIRED FOR BEING 14.001 INCLUDED IN THE DATABASE Health and Safety: DEPENDING ON THE GOOD OHSAS 18.001 OR SERVICE 9 99
    • PETROBRAS Supplies Qualification Requirements HSE requirements will be requested in every contract with a degree of flexibility that will depend on the level of the contract’s risk • Planning (risk analysis, environmental SERVICES CATEGORIES aspects, legal compliance and goals) EXAMPLE • Structure and responsibility OCURRANCE PROBABILITY • HSE Training A B C D • Involvement and communication 1 • Accidents and incidents treatment 2 QI • Critical analysis by the administration GRAVITY 3 I III • HSE management system audit QI Q • Organization and Cleaning 4 V • Subcontracts QI 10 10 10
    • PETROBRAS Goods and Services Suppliers Training Efforts Petrobras demands high quality, but the company also helps the local market to achieve necessary standards • Prominp - investments of R$ 200 million to qualify 70 thousand professionals between 2005-2007 • TEAR (Weaving Responsible Network): partnership Inter- American Development Bank, ETHOS and IBP • 33 projects to develop new suppliers to substitute imports – R$ 53.5 million • Pact with Government Agency (Sebrae) to include small and medium companies in the supply chain • “Mechanics Friend Program” - since 2001 23,500 people have participated • “Transport Quality Program” from BR – aims to reduce accidents through training and qualification 11 11 11
    • PETROBRAS PROMINP: Promoting the Oil Industry PROMINP: Programa de Mobilização da Indústria Nacional de Petróleo e Gás Natural Program for the Development of the National Oil and Gas Industry Main Goal: to incite oil & gas activities to provide growth opportunities to the national industry of goods and services, creating jobs, generating wealth and allowing a surplus in the trade balance POLICY Maximize the national industry of goods and services participation, in a competitive and sustainable basis, in Capacity of the implementation of oil and gas attending the PROMINP projects in Brazil and abroad national Industry Portfolio of projects for the in a Competitive Mobilization and Qualification Investment and Sustainable of the Industry Portfolio Basis Agent PETROBRAS 12 12 12
    • PETROBRAS PROMINP: Promoting the Oil Industry Identificati on training Mapping of Identification Content level Training of entities to Courses development based needs market develop new on appropriate courses methodology Met by College market UFRJ PUC level CONTENT USP ? DEVELOPMENT Met by market SENAI CEFET CONTENT Tecnical DEVELOPMENT level FBTS ? 118 118 PROMINP IN NUMBERS • 150 critical Oil&Gas categories • 750 courses in 17 states • 50 institutions throughout the country • 70,000 trained • R$200 million invested 13 13 13
    • PETROBRAS PROMINP: Supply of Goods and Services 100 Imports Zone Supply with ( Impossibility of National Supply ) Imports Over-price Zone Non-Competitive Fomenting % National Content (Fomentation Actions) Supply Actions Suppliers Development Comfort Zone Competitive Supply PROMINP’s ( Competitive Supply Zone with initiatives Main Goal Amplification ) Competitive Current Supply Zone Supply (Loss Zone) 0 t0 t1 Time Increasing Infra-structure, Personnel Qualification and Competitiveness of the Industry 14 14 14
    • PETROBRAS PROMINP: Creation of job opportunities Up to 203 thousand positions will be created during the implementation of the project Positions created due to Investments in Oil and Gas Industry 250000 Total positions Peak: 203 Created thous. jobs Average number of Number of Positions Created positions created 200000 Average number of 189 thous. between 2005-2009 positions created 166 thous. between 2004-2010 150000 Estimate of indirect labor 100000 Estimate of direct labor * 50000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Years 15 * Critical Resources, Non-Critical and Complementary Services 15 15
    • PETROBRAS Other Training Programs TEAR (Weaving Responsible Network): partnership Inter-American Development Bank, ETHOS and IBP • Implementing CSR for micro and small companies • Petrobras’ Role (anchor of Oil and Gas sector): commitment, expertise, staff, operational costs, seminars, working groups and qualification courses. Improvement of the Supply Chain S&E Responsibility • Partneership with ETHOS Institute, reporting to Ethos Indicators • Assessement of Results: •2003: 105 companies assessed •2004: 195 companies assessed •2005: 400 companies assessed 16 16 16
    • PETROBRAS Other Training Programs Main Initiatives of the Agreement Petrobras/Sebrae • Local baseline of Micro and Small companies • Development plan for Micro and Small companies • Qualification of Micro and Small companies to be potential suppliers for the Oil & Gas Sector • Networking and cooperation between local companies and Oil & Gas Companies • Institutional support of Oil & Gas Companies • Network and cooperation between large, micro and small suppliers to become local suppliers 17 17 17
    • PETROBRAS Biodiesel – Social Fuel 3 Projects Being Implemented Quixadá Capacity: 171 thousand m3/year CE Investments: ~ US$ 60 million Inputs Family Agriculture: castor, cotton, and palm. Complementary: soy. BA Candeias Jobs Generations: Construction: 1,200 direct and 400 indirect Operation: 105 direct MG Montes Raw material production:75,000 families Claros Start up: 4 Q/2007 semi-arid region All Petrobras Biodiesel has Social Fuel Seal 18 18 18
    • PETROBRAS Government Social Seal in Biodiesel • Given to biodiesel producers that: • Purchase a minimum percentage of raw materials from family agriculture: • 50% NE and semi-arid region • 10% NW and CW region • 30% SE and S region • Sing a formal contracts with the family agriculture that includes: • Contract period • Value to purchase and price readjustment criteria • Raw material delivery conditions • Safeguards for each party • Identification and agreement that a representative of the farmers participated in the negotiations • Assure assistance and technical training for the agriculture families 19 19
    • PETROBRAS Final Comments • The contribution of Petrobras to Brazil's growth can be evaluated by its capacity to stimulate de development of: • Jobs and income; • Business opportunities (also for small and medium companies); • Technological and Management knowledge; • Energy Efficiency and guaranteed supply; • Tax payment; • Social Welfare. 20 20 20
    • PETROBRAS QUESTION AND ANSWER SESSION Visit our website: www.petrobras.com.br/ri/english For further information please contact: Petróleo Brasileiro S.A – PETROBRAS Investor Relations Department E-mail: petroinvest@petrobras.com.br Av. República do Chile, 65 - 22nd floor 20031-912 – Rio de Janeiro, RJ (55-21) 3224-1510 / 3224-9947 21 21 21