Overview and Opportunities Subsea UK Webinar 02 July 2020 Flavia - - PowerPoint PPT Presentation

Brazil Subsea Industry Overview and Opportunities

Subsea UK Webinar – 02 July 2020 Flavia Silva de Castro BDM Oil & Gas Brazil

Agenda

– DIT – Who we are & How we can help UK companies in Brazil – Overview of the Oil&Gas sector – Oil&Gas and Subsea industries current scenario – Opportunities – Market Intelligence – Decommissioning – Offshore Wind – DIT Activities – Final Remarks

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Who we are

The Department for International Trade (DIT) helps UK businesses export and grow into global

• markets. We also help overseas companies locate and grow in the UK. We are present in over

100 countries throughout the world. DIT Brazil Energy Team

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Based in UK

Daniella Carneiro O&G Natasha & Greg

Renewables

Based in Rio, Brazil

What we do

– Help businesses sell overseas – contact a Trade Adviser in your area – Assist with Export Finance – Foster business and partnership opportunities – Improve market access – Provide Government-to-Government collaboration How we can help you in Brazil *

• country and sector advice
• local market research
• assistance during a market visit
• identification of possible business partners
• preparation for exhibitions and events
• access to activities such as market visit opportunities/Trade Missions, meet-the-buyer

events and networking receptions.

*Depending on the level of assistance required it may consist on a chargeable service

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Brazil – Country overview

5 ➢ GDP: USD 1,868,626.09 (World Bank 2019) ➢ Population: 212,038,807 (2020) ➢ Energy consumption: +2,3% in 2020 ➢ Largest Oil & Gas Producer in Latin America ➢ Oil & Gas sector = 11% GDP ➢ Electricity from Renewables: 82% ➢ Largest Power market in Latin America - installed capacity of 164 GW. ➢ Regional leader in wind power, directly supplying 75 million ppl

Recife Rio de Janeiro São Paulo Belo Horizonte Brasília

HM Gov / DIT

Fundamentals of the Oil & Gas in Brazil

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Source: ANP

Oil & Gas Business Environment

– End of sole operator status for Petrobras in Pre-Salt areas – Petrobras divestments, especially in Mature Fields, are attracting new players (Trident Energy, Perenco, etc) – Less bureaucratic and protectionist local content regulation – Petrobras Procurement – new process from June 2018 www.petronect.com.br – Opportunities with other IOCs and NOCs

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Source: ANP

Current Scenario

– Petrobras –

• Revised portfolio expected for September 2020. Before crisis, expected investment in the region
• f US$75 billion between 2020-2024, with US$ 64 billion in pre-salt and ultra deepwater projects in

post-salt.

• Focus on deep and ultra-deep water
• Looking for operation efficiency and to increase the recovey factor

– Shell –

• Capex reduction not to affect projects in Brazil
• Consolidated protfolio in Brazil with projects on diferente phases
• 23 operated assets / 15 in participation
• JV with Mitsubishi and Pátria for Marlim Azul thermal power plant in Macaé

– Equinor –

• Keeping the timetable of projects in Brazil, especially in the Bacalhau field and phase 2 of

Peregrino development

• First oil expected for mid 2024, with 11 wells connected to a large FPSO
• Peregrino phase 2 expected for the last quarter of 2020 with 3 fixed platforms

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Current Scenario - Subsea

– Offshore projects remain important – Renegotiation of contracts with big suppliers – IOCs keeping major projects, pre-salt, revising less strategic ones, looking with caution – Mero, Buzios, Bacalhau, Gato do Mato – likely not to be affected – Independent oil companies – revisiting strategies – Lapa seems to be in revision by Total – Subsea package for Mero 3 ongoing, proposals due this week – EPCI for Mero 2 had proposals delivered but no definition

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O&G Production Ranking by Operator

1. Petrobras – 3,548,169 boe/d 2. Shell Brasil – 58,058 boe/d 3. Total E&P do Brasil – 34,287 boe/d 4. Enauta Energia – 31,039 boe/d 5. PetroRio Jaguar – 20,688 boe/d 6. Equinor Brasil – 12,600 boe/d

Source: ANP April 2020

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FPSOs in Brazil

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FPSOs in Brazil (projects may be under revision)

– Brazil accounts with 1/3 of the global orders (US$98.9 billion - according to EMA) in the next 5 years (2020-24) – Petrobras biz plan foresees 13 new FPSOs in operation in this period:

• P-70 – 2020 – Atapu field
• Mero 1 (Guanabara) and Sépia (Carioca) – 2021
• Marlim 1 (Anita Garibandi), Buzios 5 (Almirante Barroso) and Lula Oeste – 2022
• Parque das Baleias, Mero 2 (Sepetiba) and Marlim 2 (Ana Neri) – 2023
• Buzios 6, Mero 3, Sergipe-Alagoas (SEAP) and Itapu – 2024

– Enauta – Atlanta field – 2022 – Equinor – Carcará/Bacalhau field – 2023/24 – Shell – Gato do Mato – 2024 MODEC, SBM, YINSON

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Petrobras´ FPSO Schedule

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Projects may be under revision. Petrobras is expected to announce a new business plan soon.

Year operation expected to start

Source: Petrobras

Opportunities – Enhancing Recovery

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Opportunities – Subsea (part 1)

• Simulators for ROV operations in shallow water, using data as real as possible.
• Supplier of data and numeric models for ROVs and crawlers
• AUVs for shallow water
• Sea chest in non-metalic material (composites for example)
• Diverless spools for riser connections
• Internal cutting tools (laser or high pressure water jet) for jacket legs, for decommissioning
• Subsea monitoring systems - Sensors permanently installed for measurement applications

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Opportunities – Subsea (part 2)

• Underwater wireless data transmission
• Subsea integrity management and systems, for flexible pipes for example, but limited to it.
• Technology to allow the retrieval of flexible lines with reduced cost, decommissioning
• Technology for the plugging of flexible risers, decommissioning
• Technology for cutting flexible pipelines, decommissioning
• Technology for the treatment of NORM, decommissioning
• Technology for cutting rigid pipelines, decommissioning

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Recent Contracts & Opportunities (Market Intelligence)

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• Petrobras planning 3D/4D streamer multizamute seismic in the Marlim, Albacora and

Voador fields. 2,17 k km2 expected for August with Polarcus Serviços Geofísicos do Brasil.

• Petrobras renewed contract with DOF/Norskan for 3 AHTS, 2 for two years and 1 for one
• year. The vessels are equipped with ROVs for 3,000 m water depth operations.
• Petrobras signed contract with Solstad for the charter of 2 AHTS for two years, starting

expected in September. ROVs for 3,000 water depth.

• In March, NOV Flexibles signed contract with Petrobras to supply 137 km of flexible pipes,

services and reels, for production and water injection. 4 year contract.

• In March, the companies Farol and Finarge Apoio Marítimo won bid from Petrobras for 1

DSV (for subsea intervention, saturated dive/300m and ROV) and 1 AHTS-TS, respectively.

• OneSubsea awarded PLEM and UTA for Marlim and Voador fields Revitalisation Project,

from Petrobras.

Decommissioning Outlook

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Source: ANP

Decommissioning Outlook

– New resolution published in April 2020

• Investment forecast 2020-2024 in the region of US$5.2 billion

– 20 decommissioning programmes approved by ANP – Decom of Cação awarded to Consoria Piauí-Alabama.

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Source: ANP

Decommissioning - Challenges

– Logistics and Infrastructure

• Vessels (PSVs, Heavy Lifts, etc)
• Waste management
• NORM detection and management
• Shipyards and ports

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Source: ANP

– Technology

• Life extension
• Structural reliability
• Environmental monitoring
• Cutting tools
• RD&I

Offshore Wind in Brazil

– Roadmap identified potential across the whole country –> further studies are needed around economics; – 5 applications of environment licenses –> three of them from Iberdrola; – UK-BR working group to share regulation and industrial strategy; – Prosperity Fund Energy Programme; – First development are expected to start in 5-10 years.

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Clean Growth

̶ Petrobras

• Ongoing R&D on Wind and Solar – long term
• Efficient & Low Cost Refining – digital transformation and AI
• Improve Logistics
• Pre-Salt World-class Assets
• Exploratory risk reduction
• Development time reduction
• Industrial automation: increased security & efficiency

– Shell

• Raizen - Biofuel plant in São Paulo with Cosan
• Seeking authorization from BR Gov for 13 photovoltaic plants in Minas Gerais

– Equinor

• Solar plant in NE Brazil, 2018

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Future DIT Activities

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– vEEC, Aberdeen – September – 2020 – Subsea Expo, Aberdeen – February 2021 – UK&BR Partners in Energy, Rio de Janeiro – March 2021 – Rio Oil & Gas 2020, Rio de Janeiro – October 2021 – Keep an eye on our webinars!

Final Remarks

• Brazil considered the largest offshore market in terms of opportunity
• The fundamentals are good and attracting investors
• Diverse environments such as onshore, offshore, mature fields, decommissioning,

downstream,

• Petrobras´ divestments allowing the diversification of players
• Development of an open, competitive and dynamic market
• Opportunities:

✓ Maximising recovery (EOR/IOR) ✓ Life extension of subsea equipment and offshore assets ✓ Innovative and cost saving solutions for SURF, Subsea equipment and EPCI ✓ Improve production in mature fields ✓ Decommissioning

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Thank You & Stay Safe!

Flavia.Silva@fco.gov.uk Mobile: 55 21 997658954