Brazil: Petrobras CEO Outlines Company’s Business and Management Plan During Rio Oil & Gas

Recently Petrobras CEO, Maria das Graças Silva Foster, outlined the company’s Business and Management Plan in her closing remarks during the Rio Oil & Gas conference at Riocentro (in Rio de Janeiro). She highlighted the enormous impact that the US$ 236.5 billion in investments for the 2012-2016 period will have on the expansion of Brazil’s shipbuilding and offshore industries. For the Exploration & Production and Downstream sectors, which are responsible for managing the activities involving offshore units, a total of US$ 107 billion is allocated under the plan, Graça Foster added.

Between drilling rigs, production platforms and ships, contracts with the naval industry add up to 137 units for oil production activities, which are expected to increase from the current 2 million barrels to 4.2 million barrels by 2020. The increase in production will be accompanied by the expansion of the reserves which, in addition to the current 15.7 billion proven barrels of oil equivalent (boe), also include a potential volume of 15.8 billion boe, totaling 31.5 billion boe.

Petrobras’ E&P performance has placed Brazil in an even better position in the world ranking, the CEO highlighted: “from 2005 to 2010, more than 50% of the world’s discoveries were in deep waters, of which 63% were in Brazil. In the last eight years, Petrobras has reported 252 discoveries to the ANP, of which 63 are in the pre-salt.” The results to date and the expectations of new discoveries make it possible to predict that, in 2030, Brazil will be the country with the highest production growth among non-OPEC countries, according to studies conducted by PFC Energy.

Shipyard Incentives

Graça Foster presented a map showing almost 20 shipyards and naval construction sites located along the Brazilian coast, which have industrial ties with Petrobras. Some of the various units to be built in shipyards throughout the country by 2020 include 38 production platforms, 28 offshore drilling rigs, 49 tankers and 568 support vessels. “The shipyards cannot be delayed on the construction and integration of the modules, as this would lead to production losses. The production curve will only be achieved if the shipyards meet the established deadlines”, the CEO stressed.

During the presentation, the CEO highlighted some technical information on existing shipyards in Brazil as well as those that are under construction, and she detailed a few of Petrobras’ naval projects, such as construction of the eight pre-salt platforms at the Rio Grande Shipyard (in the state of Rio Grande do Sul), all with a local content of 70%, and the P-55, with a local content of 65%. “The P-55 is exclusively a Petrobras project, and we are very proud of it. The platform will be released from the Rio Grande Shipyard dry-dock in a few weeks and will begin production in September 2013.”

Local Content

Qualification for the offshore and shipbuilding industries was another topic the CEO mentioned, providing data from the National Oil Industry Mobilization Program (Prominp), which has already qualified 58,562 professionals for the industry’s naval sector and expects to qualify another 106,929 by 2020. “A qualified workforce is a challenge, but it is also an opportunity. We are committed to the country’s industry and Petrobras intends to fulfill its role”, the CEO assured.

[mappress]
Press Release, September 24, 2012