The Case of Libra - Bratecc | Brazil-Texas Chamber of … 02. Local Content... · The Case of Libra Paulo Sergio ... 36 Offshore Cranes 12 Vacuum Sewage System ... Helicopter Refueling

Local Content and Maritime Demands for Equipment

and Services in the Horizon 2018-2030:

The Case of Libra

Paulo Sergio Rodrigues Alonso

Petrobras Local Content Advisor to the CEO

Executive Coordinator of PROMINP

BRATECC EVENT - Houston, 07th May 2014

Undocking of P-66’s hull in Rio Grande Shipyard, the first hull for Pre-Salt fully built in Brazil

Agenda

Brazilian Local Content Regulation and Requirements for Libra

PETROBRAS’ Local Content Policy

Offshore and Maritime Equipment Demand

Conclusions




Agenda

Conclusions

Brazilian Local Content RegulationLocal Content Requirement

Obs 1 – Logistic Support

Obs 2 – Drilling + Completion

Obs 3 – Auxiliary System

Exploratory Phase

Subsystem ItemMinimum Local

Content item (%)

Minimum LC–

Exploratory Phase (%)

Operational Support Logistic Support (Sea/Air/Base) (obs. 1) 50

37

Geology and GeophysicsSeismic Acquisition 5

Interpretation and Processing 85

Drilling, Evaluation and Completion

Drilling Rig 29

Drilling + Completion (obs. 2) 45

Auxiliary System (obs. 3) 54

Extended Well Test (EWT) 15

Sub-items Exploration Phase (%)Flight Support 50

Offshore/Maritime Support 50

Onshore/ Land Support 80

Sub-items Exploration Phase (%)Drilling Bit 5

Wellhead 60

Production Column 24

Well Equipment 50

Casing 73

Sub-items Exploration Phase (%)Field Instrumentation 40

Automation System 60

Flow Measurement System 60

Telecommunications System 40

Electrical System 70

Local Content Requirements for LibraExploratory Phase

Local Content Requirements for LibraProduction Development Phase

Development Phase (DP) - modules with first oil up to 2021

Subsystem Item Minimum Item Local

Content (MLC) (%)

MLC -Development

Phase modules (%)

Drilling,

Assessment

and

Completion

Drilling Rig 50

55

Logistic Support (Maritime/air/Base (obs 1) 50

Christmas Tree 70

Drilling + Completion (obs 2) 37

Auxiliary Systems (obs 3) 58

Production

Collection

System

FlowlinesFlexibles 40

Rigids 80

Basic Engineering 90

Detailed Engineering 90

Management, Construction and Assembly 34

Flexible Production/Injection Lines (Flowlines, Risers) 56

Rigid Production/Injection Lines 50

Manifolds 70

Underwater Control System 20

Umbilicals 55

SPU

Hull



Management 90

Construction and Assembly 75

Comissioning 90

Equipment and Materials 40

Naval Systems 50

Materials 80

Plants (obs 5)



Management 90


Comissioning 90

Equipment and Materials (obs 5.1) 57

Materials 80

Modules Integration

and Instalation



Management 80


Naval Systems 10

Comissioning 75

Materials 75

Anchoring

Pre-Installation and Hook-up of Anchoring

Lines 40

Multiple Anchoring Systems 85

Obs 1 - Logistic Support

Subsystem DP up to 2021

Maritime Support 50

Air Support 50

Base Support 80

Obs 2 - Drilling + Completion


Drill bit 5

Wellhead 60

Production Tube 32

Well equipment 50

Casing 73Obs 3 - Auxiliary Systems


Field Instrumentation 40


Fiscal Measurement

System60

Telecommunication

System 40

Electric System 70

Obs 5.1 - Equipaments and Materials

Equipaments MLC (%)

Boiler

Forges 80

Tanks 83

Pressure Vessels 70

Field Instrumentation 40

Estatic

Equipamets

Filters 80

Cathodic Protection 90

Flare System 14

Valves (Up to 24") 58

Rotary

Equipament

Pumps 70

Rotary Equipament - Alternative Compressors 70

Rotary Equipament - Rotary Screw Air Compressors 70

Rotary Equipament - Diesel Engines (up to 6 HP) 65

Rotary Equipament - Gas Turbines 35

Rotary Equipament - Steam Turbines 80


Fiscal Measurement System 60

Telecommunication System 40

Electric System 70

Process Towers 75

Cooling Towers 85

Heat Exchangers 50




Agenda

Conclusions

PETROBRAS' Local Content Policy

The projects and acquisitions for Petrobras must support the

challenges of Company’s Strategic Plan and therefore maximize local

content based on competitive and sustainable basis, accelerating the

development of markets where it operates, guided by ethics and

generating continued innovation.

December 22nd, 2011


PETROBRAS’ Local Content PolicyDrivers

Ensure adherence to capital discipline, assuring the competitiveness of

procurement and reducing financial and logistical risks in implementation and

operation of projects.

Capital

Discipline

Execute procurement in a coordinated manner for the items of common use.Integration of

Supply

Uniform criteria for measuring and requiring local content in Petrobras

acquisitions.

Local Content

Standardization in

Petrobras

Encourage the development of local markets in a sustainable manner.Local Suppliers

Prioritize supplies with local engineering development.National

Engineering

Encourage the development of the local market to overcome technology gaps.Technology

Gaps

DR

IVE

RS

PETROBRAS’ Local Content PolicyLocal Content Requirements

Minimum Local Content requirement for financing concession (BNDES)

Local content requirements

established in oil field concession contracts

There is no Local Content requirement

Oil Company declares target and proves rate achieved

Petrobras Local Content Policy determines that all business areas must achieve

minimum local content on its activities (capital and operational expenditure)

Upstream Refining Gas & Power

Local content requirements set by Petrobras according to the list of goods and services demanded by capital projects and local industry capacity to provide them

ANP with O&G Operators Petrobras with Suppliers

Co

ntr

atu

al O

blig

atio

n




Agenda

Conclusions

Example of potential equipment

for national development

Source: BMP 2014-18; Petrobras

36 Chemical Injection Units

36 Offshore Cranes

12 Vacuum Sewage System

24 Offloading System

48 Life Boats + Davit

84,000 Manual Operated Valves

24,000 ton of Piping

19,200 ton of Fittings

Production UnitsFleet increase by 2030

ND: Not defined * Charted Production Unit ** Integrated in Brazil with imported Hull or Modules

Abroad/Brazil ** Brazil To be contracted

Construction Site

Operation Startup Timeline of Petrobras Production Units

Equipment demand for

12 Production Units of

Libra to be delivered

between 2020 and 2030

2014 2015 2016 2017 2018 2019 2020//

2030

Production UnitsConcept for the Librastandard FPSO

The concept for the Libra standard FPSO is still under

evaluation, but most lileky it will not deviate significantly

from a typical Pre-salt FPSO shown below.

Demand for the 12 Production Units of Libra to be delivered between 2020 and 2030

Production Units - LibraMain demands for equipment – Topside

Source: Petrobras

Package/Skid Demand (Units)

Vapor Recovery Unit 24

Gas Dehydration Unit 12

Vacuum Deaerator Unit 12

Chemical Injection Unit 36

H2S Removal Unit 12

Nitrogen Generator Unit 12

Sulphate Removal Unit 12

Electrostatic Treaters Package 12

Produced Water Treatment 12

Flare Gas Recovery Compression Unit 12

Flare 12

Fresh Water Maker 12

Shell&Tubes Heat Exchange Package 12

Plate Heat Exchangers Package 12

Pressure Vessels / Separators Packages 12

Centrifugal Pumps Package 12

Sea Water Lift Pumps Package 12

Package/Skid Demand (Units)

Water Injection Pumps Package 12

Well Service Pump Package 12

Reciprocating Pumps Package 12

Positive Displacement Pumps Package 12

Filters Package 12

Pig Launchers & Receivers Package 12

Mechanical Handling Equipment Package 12

Icss – Integrated Control & Safety System 12

Hydraulic Power Unit - Hpu 12

Fiscal Metering Skid 12

Electrical And Automation Module 12

Hvac System 12

Exportation Gas Compression Unit 12

CO2 Compression Unit 12

Main Gas Compressor 12

Injection Gas Compression Unit 12

Main Turbogenerator Unit 12

Production Units - LibraMain demands for equipment – Loose Equipment

Source: Petrobras

1120 of 288 compressors are activated by turbine

Equipment Demand (units)

Compressor 312

Pressure Vessel (Scrubber/Separator/K.O.Drum) 744

Tank 324

Control Panel (Distribution Panel) 996

Pumps 1,248

Hydrocyclones / Gas Flotation 84

Filter 264

Shell&Tubes Heat Exchanger 564

Plate Heat Exchanger 216

Mechanical Handling Equipment 1,272

Oil Dehydrator / Pre-Oil Dehydrator 24

Oil Dehydrator Degasser / Pre-Oil Dehydrator Degasser 24

Pig Launchers & Receivers 288

Control, Shutdown, Choke, Pressure Safety, Deluge Valves 9,600

Manual Valves (Un) 84,000

Piping (Ton) 24,000

Fitting (Ton) 19,200

Cable (Electrical/Instrumentation/Telecom) (Km) 6,000

Instrumentation (Transmitter/Gauge/Indicator) (Un) 24,000


Production Units - LibraMain equipment demand – Hull


Offshore Crane Api-2C (50T) 36

Aluminium Helideck 12

Lifeboat & Davit 48

Rescue Boat & Davit 48

Foam Firefighting System 12

CO2 Firefighting System 12

Inert Gas System 12

Sewage Treatment & Vacuum Unit 12

Auxiliary & Emergency Diesel Generator 24

Diesel Fire Water Pump 24

Ballast Pumps 48

Cooling Water Pumps 24

Fresh Water Generator 24

Portable Water Generator 24


Fire Detection System 12

Environmental & Positioning System 12

Navigation Aid System 12

Offloading System 24

Mooring System 48

Pull-In / Pull-Out System 12

Submerged Cargo Pumps 168

Submerged Deballast Pumps 72

Control Valves System (Un) 2.400

Helicopter Refueling System 12

Diesel Purifier 12

VAC System 12

Accomodation Package 12

Automation & Electric Package 12


Source: Petrobras

Example of potential equipment


81 Chemical Injection Units

81 Offshore Cranes

27 Vacuum Sewage System

54 Offloading System

108 Life Boats + Davit

189,000 Manual Operated Valves

54,000 ton of Piping

43,200 ton of Fittings

Equipment demand not

yet addressed for 27

Production Units to be

delivered by 2030

Production UnitsFleet increase by 2030

Production Units considered for the equipment demand analysis

Operation Startup Timeline for Petrobras Production Units

Source: BMP 2014-18; Petrobras ND: Not defined * Charted Production Unit ** Integrated in Brazil with imported Hull or Modules

Abroad/Brazil ** Brazil To be contracted

Construction Site

2014 2015 2016 2017 2018 2019 2020//

2030

Example of equipment with potential


21 Derrick Structure

21 Traveling equipment

21 Choke and Kill Manifold

21 sets of Risers

21 BOP (parcial)

21 sets Eletrical System

126 Main Diesel Generators (parcial)

21 Emergency generators

63 Deck Cranes

126 Azimut Thrusters

2,037 Pumps

630 HVAC System

21 Accomodation

Drilling RigsFleet increase by 2020

Equipment demand not yet

addressed for the 21 drilling

rigs to be delivered by 2020

Source: Petrobras; Sinaval

Drilling rigs considered for the equipment demand analysis

Petrobras Drilling Rigs Startup Timeline

+6

+4

+6

+3

+8

+1

2014 2015 2016 2017 2018 2019 2020

Abroad/Brazil **

Construction Site

2

3

1

Aerial view Rio Grande shipyard ERG1 – RS (dec/13).

(1) Portico with 600 tons capacity (2) Portico with 600 tons capacity ; (3) Patio slabs of Ecovix; (4) FPSO Replicante P-66 blocs of hull

4

Rio Grande Shipyard (ERG 1) - RS• 8 Hull Constructions (“Replicantes” )

Local Content: 70%

2

Rio Grande Shipyard ERG1 – RS (april/14)

(1) P-66 final hull construction activities at quay – the first hull for Pre-Salt fully built in Brazil – 70% Local content;

(2) P-67 hull construction on dry dock: integration of mega blocks built in China;

(3) P-67 and P-69 mega blocks built in Rio Grande

Rio Grande Shipyard (ERG 1) - RS

• 8 Hull Constructions (“Replicantes” )

Local Content: 70%1

3

3

Rio Grande Shipyard (ERG 2) - RS

Works' Aerial View of Rio Grande 2 Shipyard (ERG2) – RS (06/08/13).

Construction work of the Estaleiro ERG 2 where it will be built 3 DRILLSHIPS (NS Cassino, NS Curumim and NSSalinas).

(1) Workshops

1

1

• 3 Drilling Vessels

Local Content: 55%, 60% and 60%

Inhaúma Shipyard - RJ

2

1

Overview of Inhaúma Shipyard, in Rio de Janeiro - RJ (05/07/13).

(1) P-74: Conversion of the ship VLCC's hull (hull structural reinforcement, expansion, renovation and adaptation of accommodation, equipment installation and anchoring system's adjustment

and utilities), (2) Dry dock recovered by Petrobras.

• 4 Hull Conversions (P-74,P-75,

P-76,P-77) Local content: 70%

Atlântico Sul Shipyard - PE

1

4

5

3

2

Aerial View of Atântico Sul Shipyard (Ipojuca-PE): Construction of the Zumbi dos Palmares ship in dry dock and integration of P-62 on the shipyard dock (27/06/13).

(1) P-62: Integration of the FPSO to the 15 modules, including 3 built in EAS, 7 in the UTC gantry and 5 in the Nuclep gantry

(2) Zumbi dos Palmares SHIP of Suezmax type (2nd Lot's Ship of PROMEF 1) in dry dock; (3)Panel manufacturing workshops and pre-assembly of block,

(4) Future area for construction of 6 Setebrasil's rigs ; (5) Future area of Estaleiro Promar, responsible for building the batch of 8 Promef Phase 2's gas tankers.


Local Content (LC): 55% - 65%

• 7 Suezmax: 72% LC

• 5 Aframax: 68% LC

• 4 Suezmax DP: 73% LC

• 3 Aframax DP: 73% LC

/ IHI

Enseada do Paraguaçu Shipyard- BA

Overview of future Estaleiro Enseada do Paraguaçu Area in Maragogipe - BA (april/2014).

The Enseada do Paraguaçu Shipyard has contract with Setebrasil to build the 6 DRILLSHIPS (Ondine, Pituba, Boipeba, Interlagos, Itapema, Comandatuba)

(1) Integration pier; (2) Cutting and sheet metal processing; (3) Drydock


Local content: 55% - 65%

1

2

3

http://www.khi.co.jp/english/index.html

http://www.khi.co.jp/english/index.html

BrasFels Shipyard - RJ

1

2

3

Overview of BrasFels Shipyard in Angra dos Reis - RJ (31/08/12).

(1) P-61 (CL:65%): HULL'S Construction of TOPSIDE's TLWP and integration (deckbox and built modules in Singapore).

(2) São Paulo City FPSO (CL: 65%): HULL's Conversion in China and integration of the 16 mod., Built in Brasfels (5 mod), Enaval (1 mod), Thailand (8 mod) and China (2 mod).

(3) Paraty City FPSO (CL: 65%): HULL's Conversion in Singapore and integration of 15 modules built in the Brasfels (5), Nuclep (4), Enaval (2), and Singapore (4).

• 5 Building Modules and Integration

(Mangaratiba, Itaguaí, P-66, P-69

and Caraguatatuba)

• 6 Drilling SS. Local content

55% - 65%

BrasFels Shipyard - RJ

Overview of BrasFels Shpyard in Angra dos Reis - RJ (08/31/12).

(1) Hull of P-61, (2) São Paulo City FPSO, (3) Paraty City FPSO;

Paraty City FPSO's Modules: (4) TS072 - Main Gas Compressor B; (5) TS062 - Oil Treatment A; (6) TS063 - Oil Treatment B; (7) TS071 - Main Gas Compressor A; (8) TS075 - Gas Treatment

B; (9) TS073 - Compressor CO2; (CL: It was contracted full package of modules with 65% local content).

1

2

3

4

5

6

7

8

9

• 5 Building Modules and Integration

(Mangaratiba, Itaguaí, P-66, P-69 and

Caraguatatuba)

• 6 Drilling Vessels. Local

content 55% - 65%

Brasa and Mauá Shipyards - RJ

Overview of Brasa and Maua Shpyards in Rio de Janeiro - RJ (april/2014).

(1) Brasa Shipyard with modules construction activities;

(2) Mauá Shipyard;

(3) FPSO Cidade de Ilha Bela being integrated on Mauá Shipyard – 65% Local content

1

2

3

• Mauá: 12 tanker vessels (4 Panamax

and 8 Products)

• Brasa: 3 Building Modules, Topside

and Integration (Cidade de Ilha

Bela, Cidade de Maricá and Cidade

de Saquarema




Agenda

Conclusions

Local Content Policy is a Government requirement and is a consolidated practice for

projects in Exploration and Production in Brazil;

The solutions to put the Pre Salt fields into operation are known but the brazilian

Maritime Industry plays a key role considering the demands;

The average Local Content today for E&P Projects range between 55% and 65%.

There are plenty of opportunities for foreign companies wishing to establish in

Brazil; Petrobras Foreign Suppliers Attraction Programme is moving fast;

The association between brazilian and foreign manufacturers is a good approach as

to provide the solutions for technology bottlenecks and to get aquainted with

business environment in Brazil.

But many foreign companies opened their brazilian benchs operating alone and

have been very successful.

Conclusions

Documents

The Case of Libra - Bratecc | Brazil-Texas Chamber of … 02. Local Content... · The Case of Libra Paulo Sergio ... 36 Offshore Cranes 12 Vacuum Sewage System ... Helicopter Refueling