Lessons From Petrobras Development And Applicability To ... Lessons From... · Petrobras is operator of Cascade Chinook gelds in US Gulf of Mexico Dec 2006. US Mineral Management

EnerGCGenera ng Value for Our Clients

Lessons From Petrobras Development

And

Applicability To Other NOCs

By Khalid Ghozlani

Managing Director

November 22nd 2010

UNCTAD

14th African Oil, Gas and Minerals, Trade and Finance Conference and E

São Tomé & Príncipe

Copyright © 2010 E nerGConsul ng ®

About EnerGC ®

ひ EnerGConsul g® is a energy grm providing management and technical services for the energy industry in Brazil, the Middle East and soon in West Africa.

ひ Our exper se comprises a wide range of the energy value chain including opera s, HSE&Q, marke g, v , business process design & implementa , and strategy.

ひ We are unique in that we leverages exis g resources within clients’ organisa s and facilitates the transfer of capabili es.

ひ We oder our clients focused yet ｡exible services. By tapping into customers’ assets in

priority order, our with clients are mized, thus genera g greater value.

Outline

ひ Brazil Is A Developing Countryひ Yet Brazil’s NOC Managed To Become A Leader In Deep-OdゲｴﾗヴW

E&P At Home…

ひ And An Eゲデ;HﾉｷゲｴWS Player World Wide…ひ And Generates Considerable ひ Looking At Petrobras Reserves History…ひ We Recognise Tｴe Role Of Ins tu onal Building…ひ Coupled Wｷデｴ Well Timed Policies…ひ And An Impressive Modus Operandiひ We Must Learn from It And Try to Replicate It

Copyrigｴデ © 2010 EnerGConsul ng®

Brazil Is A Developing Country

0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000

* Source IMF 2009 data

Brazil

Sample of West

African Countries

0 10 20 30 40 50 60 0 10 20 30 40 50 60 70 80 90 100

ひ Ra o of income for Richest 20% to Less well od 20%. ひ Source UNDP 2004.

ひ Popula on % living on less than USD2 per day.ひ Source UNESCO EFA Global Monitoring Report (1999-

2004).

GDP per Capita ytrevoP)DSU( Indicator*

~10100

~17000

~1500

Norway

Brazil

USABrazil

~4

~8.5

~21

Sample of West

African Countries

7.4

17.9

~21.2%

Sample of West

African Countries

34.1%

63%

Social Inequality Indicator*

Copyright © 2010 EnerGConsul ng®

Yet Brazil’s NOC Managed To Become A Leader In DeepどOffshore E&P At Home…

Floating Production Units Vs. Water Depth

And An Established Player World Wide…

Petrobras is operator of Cascade Chinook

gelds in US Gulf of MexicoDec 2006. US Mineral Management Services approves the

deployment of the gヴゲデ Storage and O･ﾗading (FPSO) vessel in the GOM for Petrobras.

The FPSO will be located in approximately 2,700m of water and

260km od the coast of Louisiana se g the record for the world's deepest FPSO to date.

Petrobras preformed the world’s biggest

share odWヴｷﾐｪ in history in 2010

0

10

20

30

40

50

60

70

80

1998 2006 2008 2010

USD

Billion ~ ~

Petrobras

Agriculture Bank

of China

Visa

Industrial Bank of

China

Do Co Mo

Petrobras raised USD~70 Billions

From Overseas Regulators From Global Financial Markets

Copyright © 2010 EnerGConsul ng ®

Private sector dynamism

ひ 2007 saw cre n of OGX, a privately held E&P giant. 79 wells planned with 5 drilling rigs already on site.

ひ 2009 saw incorpora of HRT O&G another privately held E&P company.

Petrobras nurtures an eco-system of suppliers and R&D ventures

ひ 57000 suppliers of which 4800 on supply chain web

ひ Developed a new technological partnership model with 11 universi es and research ins tes that work in

collabor ve networks

ひ 2010 Braskem inaugurates the world grst “Green-Plas c”manufacturing plant using sugarcane ethanol as feedstock.

And Generates Considerable

Source: OGX and HRT :ecruoSsetisbew Petrobras and Braskem websites


Looking At Petrobras Reserves History

0

2

4

6

8

10

12

14

16

1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

~~

Selected Events

* CNPE: Conselho Nacional de a Energé ANP: Agência Nacional do Petróleo

Billion BOE

ひVenture Odゲhore on

ental

Shelf

ひConstruc on grst regﾐery

1961

CNPE and ANP

Created*

1997

Oil Crisis

1973 1978

ひ 1st OdゲｴﾗヴW Discovery

ひ R&D Centre established

1968

PSA-based

regime

expected for

pre-salt

Na onal

Ethanol

Program

1st Deep

Odゲhore Discovery

1st Ultra-

Deep

Odゲhore Discovery

Pre-salt

Discovery

No tech on the market

to produce @ 400m

Petrobras

created1953

Petrobras

and

Research

Centre 1955


Policy

External

Internal

On Shore

Od Shore < 300 m

300 m < Od Shore < 1500 m

1500 m < Od Shore

We Recognise The Role Of Ins tu al

Capabili es Building…

0

2

4

6

8

10

12

14

16

1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

~~

The Building Block of Petrobras Success Billion BOE

ひ 1st OdゲｴﾗヴW Discovery

ひ R&D Centre established

1968

Petrobras

and

Research

Centre 1955


Internal

Expected Results

• Better risk assessment• Fuel private sector

ひ Established with focused

and results

ひ Can start by working on small projects with

ゲヮWIｷgI challengesひ Tap into reservoir of

Academia

Coupled With Well Timed Policies…

0

2

4

6

8

10

12

14

16

1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

~~

* CNPE: Conselho Nacional de a Energé ANP: Agência Nacional do Petróleo

Billion BOE

CNPE and ANP

Created*

1997


Policy

Create an oversight

structure type ANP

Expected Results

Applicability

NOC with cri cal

mass size

ひNOC will be more focused on its core business and mandate of

gﾐSｷﾐｪ and developing hydrocarbon resources

ひHealthy compe with foreign operators will oblige

NOC to raise its levels

2002 Indonesia BPMIGAS overseeing NOC Pertamina

2005 Bahrain NOGA overseeing NOC BAPCO

And An Impressive Modus Operandi

0

2

4

6

8

10

12

14

16

1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

~~

Selected Events Billion BOE

1st Ultra-

Deep

Odゲhore Discovery

Pre-salt

Discovery


Internal

Extended Well Tests

Adopt Early

Production Strategies

Expected Resultsひ Cash ｷﾐ｡ﾗ┘ early in project life

cycle

ひ Reduced uncertainty regarding reservoir dynamic

characterisa on and behaviour

ひ Be er n of development plans

Conclusion

In the 80s we saw the emergence of anew management

We must learn from it and try to replicate it!!!

Are we witnessing the emergence of a

new

management style à la

Brazil?


style from Japan with

Kaizen concepts of

improvement


Thank You For Your on

E nerG CGenera ng Value for Our Clients

UNCTAD

14th African Oil, Gas and Minerals, Trade and Finance Conference and E

São Tomé & Príncipe

Documents

Lessons From Petrobras Development And Applicability To ... Lessons From... · Petrobras is operator of Cascade Chinook gelds in US Gulf of Mexico Dec 2006. US Mineral Management