Technip Brazil: Solid Local Foundations for Profitable Growth
Total Page:16
File Type:pdf, Size:1020Kb
Technip Brazil: Solid Local Foundations for Profitable Growth Paulo Veronesi, Subsea Commercial Director, Brazil Investor Day in Brazil, October 4, 2011 Key Aspects of Brazil’s Economy One of the world’s largest economies 193 million inhabitants over 8.5 million km² 2010 nominal GDP: US$2.1 trillion (Ranked 8th globally) World’s seventh-largest oil consumer(1) Driven by natural resources ~40% of stock market capitalization (IBOVESPA index) 2.1 mb/d oil production US$74 billion of agricultural exports(2) Forthcoming sports events trigger significant investments Soccer World Cup in 2014 and Olympic Games in 2016 Source: Brazilian National Petroleum Agency (ANP), CIA World Factbook, IHS Global Insight, MDIC (1) Domestic oil demand of ~2 mb/d (2) From November 2009 to October 2010 2 Investor Day in Brazil, October 4, 2011 Focus on the Oil Industry Expected oil production Diversified customer base (Thousand barrels per day) 5 000 National company: 4 900 CAGR: 8.7% 98.5% of Brazilian production 4 000 ~14 billion boe of proved oil reserves 3 000 CAGR: Other operators 5.3% 2 000 2 137 1 716 1 268 1 000 … 2000 2005 2010 2020 Brazil’s oil production is estimated to double by 2020 Source: BP Statistical Review of World Energy 2011, Bradesco Corretora, Petrobras, PFC Energy. 3 Investor Day in Brazil, October 4, 2011 Brazil’s Leadership in Deepwater Worldwide new discoveries 2005 - 2010 Deepwater discoveries (33,989 million bbl) (300 - 1,500 meters) Deepwater accounts for 50% of worldwide discoveries over the last 5 years Development of these reserves will demand additional capacity from the supply chain Deepwater discoveries in Brazil represent 1/3 of worldwide discoveries in the last 5 years Source: Petrobras, PFC Energy 4 Investor Day in Brazil, October 4, 2011 Development of Conventional & Pre-salt Fields Conventional field (Campos) Pre-salt development (Santos) Progressive development (since 1974) Fast track develoment Reserves: ~16bn boe proved reserves Reserves: ~13 to 15bn boe(1) 2011e production : ~2,058 kboe/d 2011e production: ~42 kboe/day(2) 2015 objective: maintain production 2015 objective: rapid production 2011 - 2015 investments: US$64bn ramp-up 2011 - 2015 investments: US$53bn Conventional environment Challenging environment Shallow to deepwater Deep to ultra deepwater Installed flexible pipes: ~5,000km Remote area Field depletion Corrosive fluid Oil with associated gas Source: Petrobras 2011-2015 Business Plan (1) Lula, Cernambi fileds, Iara, Guara and Parque das Baleias blocks; including 5bn boe transfer right (2) Pre-Salt and transfer of rights 5 Investor Day in Brazil, October 4, 2011 Field Development Solutions in Brazil Jumpers 6 Risers Export lines Infield flowlines Flexible riser & jumper Flexible flowline IPB flexible pipe IPB(1) Rigid riser/flowline/export (1) Integrated Production Bundle 6 Investor Day in Brazil, October 4, 2011 Visibility on FPSO Delivery Schedule FPSO Delivery Schedule (Petrobras, OGX, Statoil) 9 8 7 4 2012 2013 2014 2015 Guara Pilot 2 - Cidade Lula NE - Cidade de Guara Norte Franco 1 - Cessao de Sao Paulo Paraty Onerosa Baleia Azul - Cidade de Parque das Baleias - P-58 Cernambi Sul BMS-9 or 11 - P-67 Anchieta (Replicante 2) ... Roncador Module 4 - P-62 Baleia Azul - Post-salt BMS-9 or 11 - P-66 (Replicante 1) … OSX-4 to 7 OSX-8 to OSX-10 Peregrino II … 28 FPSO’s to be delivered by 2015 … 7 Investor Day in Brazil, October 4, 2011 Tendering Activity Driven by FPSO Deliveries Flexible Supply Long Term Charters EPIC Rigids Logistics Bases Baleia Azul / Espardate Normand Progress Deep Capixaba Vitória Logistics Base Fluid Logistics Base P-58 FPSO Baleia Azul Field Skandi Vitória BC-10 Phase 2 Contract with Brazil Supply Additional Logistics P-62 FPSO Roncador Field Sunrise 2000 Shallow Capixaba Contract Guara/Lula NE Flowlines, Guara/Lula North East Export Skandi Niteroi … Jumpers & Gas Export Lines Pipelines Lula NE/Cernambi - 18" Rigid … Deep Constructor Gas Export Guara Norte/Cernambi/ Lula 6 Flex-lay Vessels Central/Lula Alto Infield & Export System Cabinas 24’’ … Gas Export Technip Wins … Awarded Projects Bids in Progress 8 Investor Day in Brazil, October 4, 2011 Brazilian Business Environment is Complex Regulatory framework States and federal systems with different jurisdictions Management of resources and logistics Decision processes Tax system Environmental requirements Understanding local specificities is key to success 9 Investor Day in Brazil, October 4, 2011 Technip in Brazil: 35 Years of Operations 1st IPB in Brazil (Papa-Terra) 1st Brazilian PLSV: Skandi Vitória ~3,200 people Roncador Subsea Field Development & P-52 Platform 2010 1,800m water depth 2007 1st LTC with Petrobras Sunrise 2011 Garoupa Platform 1st flexible pipe installed Tupi Gas Export 2009 nd 100m water depth 1995 2 Brazilian PLSV ~2,000 people Skandi Niteroi 1977 2001 P-58/P-62 Brazilian FPSOs Acquisition of Angra Porto logistics base UTC Engineering ~20 people 1986 1st Flexible manufacturing plant: Flexibras Unique experience to understand local specificities 10 Investor Day in Brazil, October 4, 2011 Technip in Brazil Today ~3,200 people All business segments Repar Hydrogenation unit Subsea Onshore/Offshore Full range of services Engineering to operations P-56 - 1st Semi-sub built in Brazil Conceptual studies to LSTK EPC contracts PLSV Skandi Niteroi Market leader across the full value chain 11 Investor Day in Brazil, October 4, 2011 Continuous Investment In Local Capabilities Largest integrated O&G services capability Number of local employees from ~1,500 in 2003 to ~3,200 in 2011 97% of total workforce is Brazilian People Port of Angra, located next to pre-salt fields 78,000 square meters 350 meters berth Channel access Critical Logistics Only flexlay vessels with Brazilian flag: Skandi Vitória & Skandi Niteroi State-of-the-art flexible manufacturing facility High-end flexible manufacturing plant under construction Assets Brazilian R&D center for pre-salt & ultra deepwater Close collaboration with key clients Product qualification Proprietary internal test center World class equipment On-Site R&D 12 Investor Day in Brazil, October 4, 2011 Strong Commitment to Health, Safety and Environment (HSE) Total Recordable Case Frequency PULSE program More than 200 managers and Per 200,000 hours worked 2,5 supervisors trained in Brazil (end 2010) Specific sessions organized on projects with clients 2 FOCOS program – Vitória manufacturing plant 1,5 Development of safe behaviour Based on observation by co-workers 1 More than 5,500 observations to date Project CONSERVAR 0,5 Waste management Reduction of energy and water 0 consumption Management of CO2 footprint 1999 2001 2003 2005 2007 2009 2011 TRCF Goal 13 Investor Day in Brazil, October 4, 2011 Sustainable and Responsible Presence in Brazil Increasing project local content Energizing Brazilian economy through long-term presence and extensive local supplier network Promoting local employment: 97% of employees are Brazilian Fostering cross-center collaboration and skills transfer Social Activities team on Technip office rooftop Supporting local communities “Projeto Brilhante”: large-scale training program launched in 2007 to help underprivileged find employment at Technip Participation in the construction of local buildings and infrastructures, charity events, donations for health causes… Reducing Technip’s impact on the environment Worldwide health, safety and environment program “Projeto Conservar”: waste management, reduction of energy and water consumption and CO2 footprint 14 Investor Day in Brazil, October 4, 2011 Close Collaboration with Diversified Client Base Subsea Offshore Onshore Flexibles Detailed EPC Diesel HDT LTC Engineering RPBC - Refinery EPCI FPSOs P-58 / P-62 Engineering Basic & Detailed Frame Agreement EPCI Engineering Olefines Plant WHP 1&2 Revamp Basic BC-10 Ph II Engineering Engineering EPCI Frame Agreement LNG plant Engineering Frame Agreement FEED Ammonia Plant 15 Investor Day in Brazil, October 4, 2011 Subsea Track Record & Ongoing Projects Track record Reel-Lay: PIP for Canapu with Deep Blue S-Lay: Tupi gas export J-Lay: PDET hybrid riser Flex-Lay: manufacturing & installation P-52 Subsea full field development P-52 Development Ongoing projects Integrated Production Bundle (IPB) Papa Terra TUPI Pilot: 1st flexible pipes for Pre-Salt Several flexible supply contracts Long-term charters Angra logistics base TUPI 16 Investor Day in Brazil, October 4, 2011 Onshore/Offshore Track Record & Ongoing Projects Track record Anitápolis fertilizer plant Colombo project P-56 Semi-sub Production Platform P-51/52/56 Semi-submersible production platform FLNG FEED Ongoing projects Cubatao refinery RPBC Olefin plants revamping and expansion P-58 & P-62 1st Brazilian FPSOs: flagship engineering service contract with over 90% local content P-58 & P-62 FPSOs 17 Investor Day in Brazil, October 4, 2011 Technip: An Experienced Local Company Regulatory challenges 35 years experience working in Brazil Pro-actively developing local resources, from people Resources bottlenecks to production capabilities Access / logistic constraints Construction and acquisition of best located assets Technology for the pre-salt Enhanced flexible capabilities & capacity to serve a development fast growing high-end subsea market Project execution Expertise in project management, planning and interfaces management 18 Investor Day in Brazil, October 4, 2011 Today’s Resource and Asset Base