Opportunities and Investment in Brazil: A BP perspective Dr Dominic - - PowerPoint PPT Presentation

Opportunities and Investment in Brazil: A BP perspective

Dr Dominic Emery BP Alternative Energy

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• The largest and most populous

country in Latin America, leading regional economy and the 6th largest economy

• Rich in natural resources, and enjoys

a comparative advantage in commodity exports of cashcrops, wood and paper products, minerals and metal products

• Brazil’s diverse industrial sector

accounts for 1/3 of the country’s GDP, making it one of the most advanced industrial nations in Latin America

• Tighter economic policy and softened

external demand dampened the pace

• f Brazil's economic expansion

considerably in 2011; real GDP growth declined to an estimated 3.8%, and is projected at 3.6% for 2012

Brazil - Economic Overview

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BP in Brazil

• Presence since 1957 (Castrol

plant in Rio de Janeiro)

• Risk Contracts 1970s-1980s
• Foz do Amazonas exploratory

campaign 1998-2005

• Air BP since 2002

− 2012: total of18 airports

• BP Biofuels since 2008

− Tropical Bioenergia − CNAA

• Butamax Advanced Biofuels

since 2010

• BP Energy do Brasil since 2011
• Currently present in 11 states

and Federal District

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• The world’s leading deepwater E&P

province

• Currently 14th largest oil producer in the

world – aims to double oil production to almost 5million b/d by 2020

• Brazil is becoming increasingly gas-rich

and production capacity growth is expected to exceed demand growth

• NOC Petrobras dominates the

upstream, midstream and downstream sectors

• Multiple opportunity types exist across

the country onshore and offshore, conventional and unconventional

• The pre-salt has been a game changer

and the government is seeking to increase state control

• Leading companies are seeking entry
• pportunities to Brazil, which is already

a core growth area for major IOCs such as BG and BP

Exploration and Production in Brazil

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BP Exploration and Production Brazil

2010 - Devon deal: 10 licenses 2011 - Equatorial margin: 4 licenses Today:

• 3 discoveries (Itaipu, Wahoo & Xerelete)
• 8 offshore exploration
• 2 onshore exploration
• 1 producing asset

Largest resource potential associated to Exploration & Appraisal activity 2012 -2013 $450m planned spend on exploration and appraisal

250 500 125 Km

BM-BAR-5 BP operated Operated by others BP operated Operated by others

10 20 5 Km 10 20 5 Km 40 80 20 Km

BM-C-32 40%BP BM-C-30 25%BP BM-C-35 35%BP BM-BAR-5 40% BP BM-BAR-3 40%BP BM-CE-1 40% BP BM-CE-2 40%BP BM-C-34 (C-M-471 & C-M-473) 30%BP Polvo 60% BP Xerelete 17.65% BP BT-PN-2 40%BP BT-PN-3 40%BP BM-CE-2 40%BP BM-CAL-13 100% BP

BP Biofuels Brazil

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Biofuels Production (M Litres)

Brazil Cane to Ethanol:

• Aim to be a top tier player in Brazilian cane to

ethanol production by 2020

• Production costs of $50/boe and falling

Growth of production clusters to achieve scale:

• CNAA acquisition in 2011, adding 2 new

mills and 3000 new staff, at a cost of $680m

• Tropical JV started up in 2008, BP 50%

share

• Acquisition of remaining 50% of Tropical in

2011, adding 1,100 staff

• Expansion of Tropical in 2012 in progress
• Further mill expansions and new builds

planned

• R&D in Biobutanol and sugar to chemicals

Jennings Plant, Louisiana Tropical Bioenergia, Brazil