Norwegian Brazilian Chamber of Commerce and Swedecham. Rio de Janeiro January 31st, Roberto P. P. Ramos CEO

Transcription

1 Norwegian Brazilian Chamber of Commerce and Swedecham Rio de Janeiro January 31st, 2014 Roberto P. P. Ramos CEO

2 Responsible for providing the Organization s strategic direction and maintaining its cultural and philosophical unity, Odebrecht S.A. seeks to improve the companies entrepreneurial practices, to promote people s growth and to develop and offer political and strategic support to all of its subsidiaries.

3 40 s 50 s 60 s 70 s 80 s 90 s 00 s Norberto Odebrecht creates the own company First contract with Petrobras (Catu-Candeias pipeline) Fundação Odebrecht is created (1965), Regional expansion Domestic Expansion and beginning of Internationalization process Internationalization and Diversification in the Oil Market Main actor in the petchem privatization process Overseas expansion, petchem consolidation and beginning of business diversification Diversification New Developments Long Term Partnership

4 Gross Revenues (2012) EBITDA (2012) USD41.3 billion USD4.1 billion Founded in 1944, the Odebrecht Group is one of Latin America s largest corporate groups and Brazil s third largest privately owned group (2011) Leading construction company in Latin America with presence in Africa Leader in the thermoplastic resins industry in Latin America and the 8th largest producer in the world Investments in transportation and logistics, biofuel, energy and infrastructure areas Brazil s largest private company in the water & sewage treatment segments Odebrecht Ambiental Real estate focused on low-income households and selective luxury developments Odebrecht Realizações Imobiliárias Integrated service provider to the upstream Oil & Gas Industry Odebrecht Oil & Gas Engineering & Construction 100% Odebrecht Chemicals & Petrochemical 38% Odebrecht 36% Petrobras 26% Other Oil & Gas Services 81.43% Odebrecht 13.57% Temasek 5.0% Gávea Real Estate Development & Construction 85% Odebrecht 15% Gávea Investment & Management of Real Estate Assets 100% Odebrecht Water, Sewage & Waste Management 73% Odebrecht 27% FI-FGTS Integrated Defense Systems 100% Odebrecht Ethanol and Bioenergy 52% Odebrecht 48% Other Shipyard 35% Odebrecht 30% Kawasaki 17.5% OAS 17.5% UTC Energy Investments 100% Odebrecht Investments in Infrastructure 100% Odebrecht Roads and Logistics Concessions 70% Odebrecht 30% FI-FGTS

5 34 years of international presence Operating in 25 countries UNITED KINGDOM GERMANY MEXICO United States GUATEMALA PANAMA CUBA REPÚBLICA DOMINICANA VENEZUELA PORTUGAL GUINEA GHANA AUSTRIA LIBYA UNITED ARAB EMIRATES SOUTH KOREA ECUADOR COLOMBIA PERU BRASIL ANGOLA PARAGUAY MOZAMBIQUE ARGENTINA URUGUAY

6 Number of members (thousand) Brazil Total

7 Gross Revenue (R$ bi) ,7 4,4 84 EBITDA (R$ bi) 2.0x 1.8x 6,2 7,1 8,3 Total Assets (R$ bi) 2.9x Net Equity (R$ bi) 3.8x

8 Odebrecht Oil & Gas provides integrated solutions for the upstream oil and gas industry, in Brazil, and selectively in Angola, Venezuela, Argentina and Mexico, both in the investment phase and operations, in the segments of Offshore Drilling, Subsea, Offshore Production and Logistics, Offshore Maintenance and Services, Well Services and E&P Management, with a focus on operational excellence and adding value for Clients and stockholders. Leader in the Brazilian ultra-deepwater drilling market (water depths up to 3,000 m) and the fifth In the world. Integrated business model, focusing on deepwater including the pre-salt. Latest generation assets. Long-term contracts. Focus on the best performance indicators and Sustainability. The only Brazilian company in the Subsea market. Team with proven industry experience.

9 More than 30 different nationalities (December/ 2013) 4 USA 5 AUSTRIA SOUTH KOREA VENEZUELA BRAZIL Total Brazilians Expatriates Foreigners 9

10 Integrity Management Services, Inspection. Offshore Asset Installation, Maintenance and Engineering. Chartering and operation of Floating Production and Support Units. Chartering, operation of Pipeline Launch Units, SURF Projects, manufacture and installation of equipment. Chartering and drilling operations for ultra-deepwaters. Provision of Specialized Oil and Gas Well Services. E&P Management Services.

11 Start of operations in the offshore industry. First private Brazilian company to provide offshore drilling services to Petrobras.

12 1997 Starts operating FPSO NSP in the Northern Sea through a joint venture with Maersk.

13 Operation at Bacia de Campos Creation of Odebrecht Oil & Gas NORBE VIII and NORBE IX contracts NORBE VI contract

14 2010 ODN I and ODN II Contracts 1 st round of private placement: partnership with Temasek

15 2011 ODN Delba III and ODN Tay IV contracts Reinforcement of Odebrecht Oil & Gas position in Subsea: With two PLSVs through a partnership with Technip 2012 Five rigs under construction in Brazil with minor participation in Sete Brasil Strengthening the position in production with FPSO Cidade de Itajaí through a partnership with Teekay 2 nd round of private placement: partnership with Gávea

16 In 1979, the Odebrecht Group began to operate in the shallow water offshore drilling segment, and up to late 90 s, in deepwater. Since 2011 Odebrecht Oil & Gas has been operating seven state-of-the-art drilling units for Petrobras: Three semi-submersible drilling rigs (NORBE VI, ODN III e ODN Tay IV) and four drillships (NORBE VIII, NORBE IX, ODN I e ODN II).

17 JV between Odebrecht Oil & Gas and Maersk, which has been operating a FPSO in the North Sea since 1997, in the exploration of the MacCulloch Field, for ConocoPhilips. Contract renewed until 2020.

18 JV between Odebrecht Oil & Gas and Teekay Petrojarl, which has been operating a FPSO in Brazil since 2013, in the exploration of the Baúna e Piracicaba Field. Capacity: barrels of oil/day, compression of 2 million m³ of gas. Chartered by Petrobras for an initial period of 9 years.

19 JV between Odebrecht Oil & Gas and Technip to build and operate two flexible pipe lay vessels (PLSV TOP Coral do Atlantico and PLSV TOP Estrela do Mar). Capacity: laying flexible with up to 550 ton tension in water depths down to 2,500m. Start of operations: 2014 (TOP Coral do Atlântico) and 2015 (TOP Estrela do Mar). Beyond these two projects, OOG was awarded with service contract in Polar Onyx PLSV foreseen to be operational in 2Q2014.

20 Engineering Projects Pipe Shop Warehouse Offshore Services

21 Odebrecht Oil & Gas is working to be the first customer choice, looking at new markets and selectively offer a wide range of services. The support of this strategy is based on synergy presence of the Organization in those places where we intend to expand our operations with selectivity and materiality. Internationalization Angola/Mexico/Venezuela/Argentina Odebrecht has more than 20 years with several businesses including E/P presence with Maersk in Block 16 (Angola) Odebrecht through Braskem is leading the highest investment in Mexico (Ethylene XXI project) Angola and GoM be part of Golden Triangle (UDW) Well Services and E/P Management Mature oil fields in Venezuela require continuous service to maintain the production level Services applied to unconventional is under our radar as well

22 Customers Diversification Drilling, Subsea Well Services and Maintenance Increase the customers portfolio beyond Petrobras All IOCs with presence in Brazil and other countries are potential Odebrecht Oil & Gas customers Technology Partnership Identify and select the best technological option to be part on our service portfolio offering the best services for markets where Odebrecht Oil & Gas are acting or intend to do Interest Areas Well Services Maintenance Offshore FPSOs PLSVs Subsea Pipelines Subsea Inspection & Maintenance

23 Composed of ultra-deepwater rigs NORBE VI NORBE VIII NORBE IX ODN I FPSO NSP FPSO CDI ODN II ODN Delba III ODN Tay IV ONDINA UNDER CONSTRUCTION PITUBA BOIPEBA INTERLAGOS BOTINAS PLSV TOP Coral do Atlântico PLSV TOP Estrela do Mar PLSV Polar Onyx UNDER CONSTRUCTION UNDER CONSTRUCTION UNDER CONSTRUCTION UNDER CONSTRUCTION UNDER CONSTRUCTION UNDER CONSTRUCTION A US$5.2 billion investment

24 Campos Basin Campos NORBE IX Jubarte Field ODN Delba III Roncador Field Macaé ODN Tay IV Albacora Field Rio de Janeiro ODN I Caratinga Field São Paulo NORBE VI Papa Terra Field NORBE VIII Xerelete Field Santos ODN II Franco Field Santos Basin MacCulloch Field North Sea FPSO NSP Aberdeen, UK FPSO Cidade de Itajaí Baúna e Piracicaba Field Last position on Oct 2013

25 In 2010, Odebrecht Oil & Gas designed its Educational, Training and Development Program, called Embarcar. It is designed to empower and enhance the skills of its Members, maximizing the safety, health and efficiency of their operations. The financial investment committed to the Embarcar Program in 2012/2013 is about USD 4 million.

26 Odebrecht Oil & Gas is a Brazilian company that prides itself on the ethnic and cultural diversity of its Members. It believes that by overcoming differences it can build a fairer and more egalitarian businesses and society. Its Members are of both genders and of various ages, religions, ethnicities and backgrounds.

27 The awards received by Odebrecht Oil & Gas are the result of the hard work and constant commitment of its Members, recognizing the excellence and quality of its professionals. Steered by the spirit of providing services and guided by the Organization s values, Odebrecht Oil & Gas Members strive to obtain the necessary qualifications and achieve the desired results to continue sharing each client s dreams and breaking records, such as over 30 million man-hours without lost-time incidents with more than 2,000 Members operating off shore. :: Euromoney: Project Finance Latin America Oil & Gas Upstream Deal of the Year :: Trade Finance: Trade Finance Deal of the Year 2009 :: PFI - Project Finance International: Latin America Bond of the Year 2010 :: International Financing Review (IFR): Latin America Bond of the Year 2010 :: Quality Assurance, Health, Safety and Environment: ISO 9001: 2008 :: OHSAS :: ISO 14001: 2004

28 The health and the occupational safety of its Members are values for Odebrecht Oil & Gas. Security issues are addressed at contract level since the original cost estimate and planning of the related activities. The health and safety programs are carried out in an integrated way and are geared towards the prevention and control as part of Odebrecht Oil & Gas culture.

29 By protecting the environment, Odebrecht Oil & Gas is in compliance with internal policies and with international norms and legal local requirements. The company s Basic Plan of Environmental Management includes: A diagnosis of the expected impacts and the definition of measures to curb or minimize them; Preparation for the restoration of degraded areas; Proper waste management; Training and development of all Members to work with focus on prevention; Preparation for emergency situations.

30 Based on the operational model of the Odebrecht Foundation, an institution supported by the Odebrecht Organization which aims to contribute to the development of youths with full conscious of their citizenship, sympathetics and responsibles for their own sustainable development. Odebrecht Oil & Gas invests in the communities where it is inserted, encouraging local development. Within this concept, it runs, since 2007, social projects in Macaé throught a partnership with Unicef and the Municipal Office of Education of Macaé, intending to foster environmental education, social, digital and productive inclusion of youth, children and local adults. Odebrecht Oil & Gas invests in the communities where it is located always encouraging local development.

31 Upsides regarding Brazilian potential There are huge areas to be explored 4.7 M km² onshore and 2.2 M km² offshore ANP rounds are back! Unlocking new frontiers in offshore, onshore and unconventionals Taking in account pre salt reserves, Brazil would rank tenth among the main oil countries (60 bi bbl) Source: IEA WEO 2013 and Internal Research

32 The 11th ANP round has put the country back on track of new rounds and acreage Offshore: new frontiers (Equatorial and East Margin) will be explored with seismic and drilling first demand for subsea and production units expected to follow in 3 to 4 years Onshore: investments are coming will test the potential of a vast area of sedimentary basins Fonte: ANP Signed Contracts per company 11th Round Petrobras Petra BG Total Petrogal BP QGEP Geopark Imetame Cowan 81 Onshore blocks / 97 Offshore blocks Statoil Ouro Preto OGX Chariot Brasoil Alvopetro Ecopetrol Gran Tierra Pacific Premier Oil UTC BHP Billiton Exxonmobil Offshore Onshore Española Chevron Source: ANP and Internal Research

33 The 12th round was mainly onshore and gas focused Industrial players are eager to use the gas ANP is betting this new round will unlock Many plays, as Paraná and Reconcavo basins, have potential for unconventional resources which will push the regulations the be adjusted Offered Areas Two of the three main areas Reconcavo and SEAL are near existing infrastructure Source: ANP

34 A strong consortium was formed by two leading oil companies (Shell, Total) and Chinese newcomers (CNOOC, CNPC) with their strong balance sheets Libra has shown Shell s commitment to Brazil while divesting elsewhere in the world and marked in bold letters the entry of Total in the Brazilian market R$ 15 bi in signature bonuses and PEM of 2 UDW wells and 1 EWT ~26-42 bi barrels in situ ~12-18 production systems 20 k bpd/well 8 wells/fpso Peak of 10 rigs ~2024 Source: ANP, IHS, BDEP

35 Petrobras will keep the lead of the Brazilian market in foreseeable future Investments reaching $148 bi until % of projects approved Was the main oil company in the three rounds of 2013» 12 blocks in the 11th round as operator» 43 blocks in the 12th round as operator» Operator of Libra with 40% Reserves levels are growing, reaching 13.5 bi bbl of crude oil This growth took the company towards a high RRR: 131% The plan: reach 4.2MMbpd in 2020 from 1.9 today Source: Petrobras, ANP, BTG Pactual

36 9 production systems were installed in the last 2 years 30 production systems will be on stream (40% to be bidded) And few others are possible: ~4 smaller FPSO Source: Petrobras and internal research

37 Repsol with important discoveries Pão de Açúcar, Gávea and Seat» WD 2,800m and 700 M boe of reserves Shell is developing BM-S-54 and starting new phases for Parque das Conchas and Bijupira-Salema Statoil has new investments in Campos basin (4 blocks awarded in 11th round as operator) BG/Galp/Repsol demanding infrastructure for their own logistics BG with 10 new blocks and Total with 6 are going to be relevant players Chinese players are coming to Brazil initially as potential investors

38 Deepwater services and equipment will keep the lead 42 new production units planned for the next six years (Petrobras and IOCs being 25 still to be bidded) generating a demand of:» 1,1 M MW of Power Generation» 100 M m³/d of Gas Treatment & Compression System Capacity» 400 Christmas Trees Additional units to be demanded in the next 4 years as Exploration matures in the North and East frontiers Onshore market needs better and more equipment after the 11th and 12th rounds (seismic, drilling, fracking etc.) Subsea infrastructure is the new bottleneck EPC of rigid pipelines are in its early stages of development in Brazil and there is not enough flexible flowlines installation capacity If Petrobras is to meet its productions targets, they probably will be short in rigs Local players prone to arrange partnerships with foreign investors and suppliers

39 Petrobras balance sheet could limit the increase of development speed New players are in the market but their share is still under the ideal level Gas players should establish their logistics before turning on the drill bit Equipment suppliers with national presence will benefit from local content and proximity to Clients Fonte: IHS

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