PROMINP`s Mission

Local Content and Maritime Demands for Equipment
and Services in the Horizon 2018-2030:
The Case of Libra
Undocking of P-66’s hull in Rio Grande Shipyard, the first hull for Pre-Salt fully built in Brazil
Paulo Sergio Rodrigues Alonso
Petrobras Local Content Advisor to the CEO
Executive Coordinator of PROMINP
BRATECC EVENT - Houston, 07th May 2014
Agenda
Brazilian Local Content Regulation and Requirements for Libra
PETROBRAS’ Local Content Policy
Offshore and Maritime Equipment Demand
Conclusions
Agenda
Brazilian Local Content Regulation and Requirements for Libra
PETROBRAS’ Local Content Policy
Offshore and Maritime Equipment Demand
Conclusions
Brazilian Local Content Regulation
Local Content Requirement
Local Content Requirements for Libra
Exploratory Phase
Exploratory Phase
Subsystem
Operational Support
Geology and Geophysics
Drilling, Evaluation and Completion
Minimum Local
Content item (%)
50
5
85
29
45
54
Item
Logistic Support (Sea/Air/Base) (obs. 1)
Seismic Acquisition
Interpretation and Processing
Drilling Rig
Drilling + Completion (obs. 2)
Auxiliary System (obs. 3)
Extended Well Test (EWT)
Sub-items
Obs 3 – Auxiliary System
Exploration Phase (%)
50
50
80
Obs 2 – Drilling + Completion
Sub-items
Drilling Bit
Wellhead
Production Column
Well Equipment
Casing
37
15
Obs 1 – Logistic Support
Flight Support
Offshore/Maritime Support
Onshore/ Land Support
Minimum LC–
Exploratory Phase (%)
Exploration Phase (%)
5
60
24
50
73
Sub-items
Field Instrumentation
Automation System
Flow Measurement System
Telecommunications System
Electrical System
Exploration Phase (%)
40
60
60
40
70
Local Content Requirements for Libra
Production Development Phase
Subsystem
Development Phase (DP) - modules with first oil up to 2021
Minimum Item Local MLC -Development
Item
Content (MLC) (%) Phase modules (%)
Drilling Rig
Drilling,
Logistic Support (Maritime/air/Base (obs 1)
Assessment
Christmas Tree
and
Drilling + Completion (obs 2)
Completion
Auxiliary Systems (obs 3)
Flexibles
Flowlines
Rigids
Basic Engineering
Detailed Engineering
Production
Management, Construction and Assembly
Collection
Flexible Production/Injection Lines (Flowlines, Risers)
System
Rigid Production/Injection Lines
Manifolds
Underwater Control System
Umbilicals
Basic Engineering
Detailed Engineering
Management
Construction and Assembly
Hull
Comissioning
Equipment and Materials
Naval Systems
Materials
Basic Engineering
Detailed Engineering
Management
Plants (obs 5)
Construction and Assembly
SPU
Comissioning
Equipment and Materials (obs 5.1)
Materials
Basic Engineering
Detailed Engineering
Management
Modules Integration
Construction and Assembly
and Instalation
Naval Systems
Comissioning
Materials
Pre-Installation and Hook-up of Anchoring
Anchoring
Lines
Multiple Anchoring Systems
50
50
70
37
58
40
80
90
90
34
56
50
70
20
55
90
90
90
75
90
40
50
80
90
90
90
75
90
57
80
90
90
80
75
10
75
75
40
85
Obs 1 - Logistic Support
Subsystem
Maritime Support
Air Support
Base Support
Obs 2 - Drilling + Completion
DP up to 2021
50
50
80
Obs 3 - Auxiliary Systems
Subsystem
Drill bit
Wellhead
Production Tube
Well equipment
Casing
DP up to 2021
5
60
32
50
73
Subsystem
DP up to 2021
Field Instrumentation
40
Automation System
75
Fiscal Measurement
60
System
Telecommunication
40
System
Electric System
70
Obs 5.1 - Equipaments and Materials
Equipaments
Forges
Tanks
Pressure Vessels
Field Instrumentation
Filters
Cathodic Protection
Estatic
Equipamets Flare System
Valves (Up to 24")
Pumps
Rotary Equipament - Alternative Compressors
Rotary
Rotary Equipament - Rotary Screw Air Compressors
Equipament Rotary Equipament - Diesel Engines (up to 6 HP)
Rotary Equipament - Gas Turbines
Rotary Equipament - Steam Turbines
Automation System
Fiscal Measurement System
Telecommunication System
Electric System
Process Towers
Cooling Towers
Heat Exchangers
Boiler
55
MLC (%)
80
83
70
40
80
90
14
58
70
70
70
65
35
80
75
60
40
70
75
85
50
Agenda
Brazilian Local Content Regulation and Requirements for Libra
PETROBRAS’ Local Content Policy
Offshore and Maritime Equipment Demand
Conclusions
PETROBRAS’ Local Content Policy
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 Policy
DRIVERS
Drivers
Capital
Discipline
 Ensure adherence to capital discipline, assuring the competitiveness of
procurement and reducing financial and logistical risks in implementation and
operation of projects.
Integration of
Supply
 Execute procurement in a coordinated manner for the items of common use.
Local Content
Standardization in
Petrobras
 Uniform criteria for measuring and requiring local content in Petrobras
acquisitions.
Local Suppliers
 Encourage the development of local markets in a sustainable manner.
National
Engineering
 Prioritize supplies with local engineering development.
Technology
Gaps
 Encourage the development of the local market to overcome technology gaps.
PETROBRAS’ Local Content Policy
Local Content Requirements
Petrobras Local Content Policy determines that all business areas must achieve
minimum local content on its activities (capital and operational expenditure)
Contratual Obligation
Upstream
Local content
requirements
established in oil field
concession contracts
Refining
Gas & Power
There is no Local Content requirement
Oil Company declares target and proves rate achieved
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
Minimum Local Content requirement for financing concession (BNDES)
ANP with O&G Operators
Petrobras with Suppliers
Agenda
Brazilian Local Content Regulation and Requirements for Libra
PETROBRAS’ Local Content Policy
Offshore and Maritime Equipment Demand
Conclusions
Production Units
Fleet increase by 2030
Operation Startup Timeline of Petrobras Production Units
Equipment demand for
12 Production Units of
Libra to be delivered
between 2020 and 2030
Example of potential equipment
for national development
 36 Chemical Injection Units
 36 Offshore Cranes
 12 Vacuum Sewage System
 24 Offloading System
 48 Life Boats + Davit
2014
2015
2016
2017
2018
2019
2020
//
2030
 24,000 ton of Piping
Construction Site
Abroad/Brazil **
Source: BMP 2014-18; Petrobras
 84,000 Manual Operated Valves
 19,200 ton of Fittings
Brazil
To be contracted
ND: Not defined
* Charted Production Unit
** Integrated in Brazil with imported Hull or Modules
Production Units
Concept for the Libra
standard 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.
Production Units - Libra
Main demands for equipment – Topside
Demand for the 12 Production Units of Libra to be delivered between 2020 and 2030
Package/Skid
Vapor Recovery Unit
Gas Dehydration Unit
Vacuum Deaerator Unit
Chemical Injection Unit
H2S Removal Unit
Nitrogen Generator Unit
Sulphate Removal Unit
Electrostatic Treaters Package
Produced Water Treatment
Flare Gas Recovery Compression Unit
Flare
Fresh Water Maker
Shell&Tubes Heat Exchange Package
Plate Heat Exchangers Package
Pressure Vessels / Separators Packages
Centrifugal Pumps Package
Sea Water Lift Pumps Package
Source: Petrobras
Demand (Units)
24
12
12
36
12
12
12
12
12
12
12
12
12
12
12
12
12
Package/Skid
Water Injection Pumps Package
Well Service Pump Package
Reciprocating Pumps Package
Positive Displacement Pumps Package
Filters Package
Pig Launchers & Receivers Package
Mechanical Handling Equipment Package
Icss – Integrated Control & Safety System
Hydraulic Power Unit - Hpu
Fiscal Metering Skid
Electrical And Automation Module
Hvac System
Exportation Gas Compression Unit
CO2 Compression Unit
Main Gas Compressor
Injection Gas Compression Unit
Main Turbogenerator Unit
Demand (Units)
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
Production Units - Libra
Main demands for equipment – Loose Equipment
Demand for the 12 Production Units of Libra to be delivered between 2020 and 2030
Equipment
Compressor
Pressure Vessel (Scrubber/Separator/K.O.Drum)
Tank
Control Panel (Distribution Panel)
Pumps
Hydrocyclones / Gas Flotation
Filter
Shell&Tubes Heat Exchanger
Plate Heat Exchanger
Mechanical Handling Equipment
Oil Dehydrator / Pre-Oil Dehydrator
Oil Dehydrator Degasser / Pre-Oil Dehydrator Degasser
Pig Launchers & Receivers
Control, Shutdown, Choke, Pressure Safety, Deluge Valves
Manual Valves (Un)
Piping (Ton)
Fitting (Ton)
Cable (Electrical/Instrumentation/Telecom) (Km)
Instrumentation (Transmitter/Gauge/Indicator) (Un)
1120 of
288 compressors are activated by turbine
Source: Petrobras
Demand (units)
312
744
324
996
1,248
84
264
564
216
1,272
24
24
288
9,600
84,000
24,000
19,200
6,000
24,000
Production Units - Libra
Main equipment demand – Hull
Demand for the 12 Production Units of Libra to be delivered between 2020 and 2030
Equipment
Offshore Crane Api-2C (50T)
Aluminium Helideck
Lifeboat & Davit
Rescue Boat & Davit
Foam Firefighting System
CO2 Firefighting System
Inert Gas System
Sewage Treatment & Vacuum Unit
Auxiliary & Emergency Diesel Generator
Diesel Fire Water Pump
Ballast Pumps
Cooling Water Pumps
Fresh Water Generator
Portable Water Generator
Source: Petrobras
Demand (units)
36
12
48
48
12
12
12
12
24
24
48
24
24
24
Equipment
Fire Detection System
Environmental & Positioning System
Navigation Aid System
Offloading System
Mooring System
Pull-In / Pull-Out System
Submerged Cargo Pumps
Submerged Deballast Pumps
Control Valves System (Un)
Helicopter Refueling System
Diesel Purifier
VAC System
Accomodation Package
Automation & Electric Package
Demand (units)
12
12
12
24
48
12
168
72
2.400
12
12
12
12
12
Production Units
Fleet increase by 2030
Operation Startup Timeline for Petrobras Production Units
Production Units considered for the equipment demand analysis
Equipment demand not
yet addressed for 27
Production Units to be
delivered by 2030
Example of potential equipment
for national development
 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
2014
2015
2016
2017
2018
2019
2020
//
2030
Construction Site
Abroad/Brazil **
Source: BMP 2014-18; Petrobras
Brazil
To be contracted
ND: Not defined
* Charted Production Unit
** Integrated in Brazil with imported Hull or Modules
 43,200 ton of Fittings
Drilling Rigs
Fleet increase by 2020
Petrobras Drilling Rigs Startup Timeline
Drilling rigs considered for the equipment demand analysis
+8
Equipment demand not yet
addressed for the 21 drilling
rigs to be delivered by 2020
+6
+6
Example of equipment with potential
for national development
+4
+3
+1
2014
2015
2016
Construction Site
Abroad/Brazil **
Source: Petrobras; Sinaval
2017
2018
2019
2020













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
• 8 Hull Constructions (“Replicantes” )
Local Content: 70%
Rio Grande Shipyard (ERG 1) - RS
2
1
3
4
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
Rio Grande Shipyard (ERG 1) - RS
• 8 Hull Constructions (“Replicantes” )
Local Content: 70%
1
3
3
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 2) - RS
1
1
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
• 3 Drilling Vessels
Local Content: 55%, 60% and 60%
• 4 Hull Conversions (P-74,P-75,
P-76,P-77) Local content: 70%
Inhaúma Shipyard - RJ
1
2
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.
Atlântico Sul Shipyard - PE
•
6 Drilling Vessels
Local Content (LC): 55% - 65%
•
7 Suezmax: 72% LC
•
5 Aframax: 68% LC
•
4 Suezmax DP: 73% LC
•
3 Aframax DP: 73% LC
5
4
3
2
1
/ IHI
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.
• 6 Drilling Vessels
Local content: 55% - 65%
Enseada do Paraguaçu Shipyard- BA
2
3
1
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
BrasFels Shipyard - RJ
• 5 Building Modules and Integration
(Mangaratiba, Itaguaí, P-66, P-69
and Caraguatatuba)
• 6 Drilling SS. Local content
55% - 65%
2
3
1
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).
BrasFels Shipyard - RJ
9
8
7
6
2
5
4
3
• 5 Building Modules and Integration
(Mangaratiba, Itaguaí, P-66, P-69 and
Caraguatatuba)
1
• 6 Drilling Vessels. Local
content 55% - 65%
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).
Brasa and Mauá Shipyards - RJ
1
2
• 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
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
3
Agenda
Brazilian Local Content Regulation and Requirements for Libra
PETROBRAS’ Local Content Policy
Offshore and Maritime Equipment Demand
Conclusions
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.