Brazil: The PROMINP Program,

PETROBRAS Local Content Policy

and Maritime Equipment Demands
Opportunities for Suppliers
Houston, Texas
6th to 9th May 2013

Agenda

PROMINP: O&G Brazilian Industry Mobilization Program

PETROBRAS' Local Content Policy
Brazilian Main Shipyards
Offshore and Maritime Equipment Demand

Agenda

PROMINP: O&G Brazilian Industry Mobilization Program

PETROBRAS' Local Content Policy
Brazilian Main Shipyards
Offshore and Maritime Equipment Demand

PROMINP: O&G Brazilian Industry Mobilization Program

May 2013

Apresentao ao Comit Diretivo

PROMINPs Mission

Maximize goods and services national

industry content, within competitive
and sustainable basis, in the
implantation of oil and gas projects in
Brazil and abroad.

Prominp
Management Structure

Steering
Committee

Oil, Natural Gas and

Renewable Fuels Secretariat

Executive
Committee
Executive Coordinator

MME Minister
MDIC Minister
PETROBRAS President and Services Director
ONIP CEO/President
BNDES President
IBP President
MME Oil, Natural Gas and Renewable Fuels Secretariat
MDIC Development, Industry and International Trade
Secretariat
BNDES - Director
PETROBRAS Engineering Executive Manager
PROMINP Executive Coordinator
ONIP Director
IBP Director
Associations President / Director (ABCE, ABDIB,
ABEMI, ABIMAQ, ABINEE, ABITAM
SINAVAL e CNI)

Sectorial Committee
Exploration
Maritime
& Production Transportation

G&P and
Pipelines

P&G IND

Downstream

PETROBRAS
IBP
BNDES

Strategic Subjects

CHALLENGE
Maximize Local
Content

Strategic Subjects
Industrial Policy

Qualification
Technological
Qualification

Industrial
Capacity

Professional
Qualification

Industry Performance

Financing

Regulation

Sustainability

Tax Policy

Foster micro
and small
companies

Safety,
Environment
and Health

Competitiveness

Prominp Projects Portfolio

E&P

MT

Downstream

GP&Pipelines

O&G IND

Environment

Technology

Examples of Results

Qualification
Technological
Qualification

Industrial
Capacity

Instrumentos de
de Poltica
Poltica Industrial
Instrumentos
Industrial

Desempenho Empresarial
Desempenho
Empresarial

Financiamento
Financiamento

Regulao
Regulao

Sustentabilidade
Sustentabilidade

Poltica
Poltica
Tributria
Tributria

Fomento
Fomento
Pequena ee
Pequena
Mdia
Empresa
Mdia Empresa

SMS
SMS

Professional
Qualification

Suppliers Development

Competitividade
Competitividade

Suppliers Development

Objective
Develop domestic suppliers in a competitive
and sustainable way, for the manufacture of
equipment and materials that are not
provided by the national market.

Competitive
Substitution of
Imports

Cases of success (examples)

Lifeboats nationalization
(E&P-11)

Offshore cranes nationalization

(E&P-11)

Examples of Results

Qualification
Technological
Qualification

Professional
Qualification

Industrial
Capacity

Industrial Policy
Industrial
Policy

EnterprisePerformance
Performance
Industry

Financing
Financing

Regulation
Regulation

Sustainability
Sustainability

Tributary
Tributary Policy
Policy

Foster
Foster
micro
Small and
and
small
Medium
companies
Enterprise

Safety,
Safety,
Environment
Environment
and Health
Health
and

Professional Qualification Plan

Competitiveness
Competitiveness

Establishment of the National Professional

Qualification Plan PNQP
PROFESSIONAL GAPS IDENTIFICATION

ACTION

BOTTLENECK
Lack of qualified
professionals to
respond competitively

Establishment
of PNQP
(2006)

Provide skilled professionals in the country to operate in

different links of the supply chain for the categories and
quantities necessary for the oil and gas projects
implementation.

EXAMPLES OF DEMANDED PROFESSIONAL CATEGORIES

Level of the
Professional Category
Structuring of professional Careers

Examples: Production operators, etc.;

High
Specialization

High investments in infrastructure for the viability of professional

qualification;
Only experienced professionals.

Examples: Cargo Operator, inspectors etc.;

Advanced

Only experienced professionals.

Examples: Engineer, Technician, Electrician, etc;

Regular

Professionals with or without experience.

Results

Capacitao
Instrumentos
de Poltica Industrial
Capacitao
Financiamento
Tecnolgica

Qualificao
Poltica
Profissional
Tributria

Instruments of Industrial Policy

Desempenho Empresarial
Desempenho
Empresarial

Capacitao
Regulao
Industrial

Financing

Regulation

Sustentabilidade
Sustentabilidade

Fomento
Pequena e
Mdia Empresa

Tax
Policy

Foster micro
and small
companies

SMS
SMS

Funding mechanisms for working capital

Competitividade
Competitividade

Financing Mechanisms

Support the structuring of new mechanisms for financing and capitalization of the production chain.
FIDCs

PROGREDIR

Investment Funds in Receivables

Fund to anticipate major

receivable credits;

9 Funds in operation:

1.528 contracts;

Over 300 financed
suppliers;

R$ 3.8 billion in
anticipation of receivables.

FIPs
Private equity funds

Financing the supply chain;

Fund of Private Equity

10 participating banks;

1 Operating Fund - net worth

Over R$ 5.8 billion granted in

loans;

Over 1.152 transactions
involving 491 companies of
21 states in all regions of
Brazil;

Reduction of 20% to 50% in
interest rates.

of U.S. $ 500 million.

Examples of Results

Capacitao
Instrumentos
de Poltica Industrial
Capacitao
Financiamento
Tecnolgica

Qualificao
Poltica
Profissional
Tributria

Industrial Policy

Desempenho Empresarial
Desempenho
Empresarial

Capacitao
Regulao
Industrial

Financing

Regulation

Sustentabilidade
Sustentabilidade

Fomento
Pequena e
Mdia Empresa

Tax Policy

Foster micro
and small
companies

SMS
SMS

Local Content Booklet

Competitividade
Competitividade

Local Content Booklet (Cartilha)

Main Concept
The Cartilha (booklet) is the official methodology for measuring local
content, published by the ANP in 2005;
It aims to identify the source of manufacture of components that make
up each piece of equipment and service;
The calculation is separated into:
Local Content of goods
Local Content of Services
Local Content of goods for temporal use,
Local Content of systems and sub-systems
For the booklet, an item is not simply "national, but has "x%" Local
Content.
Goods (%) = 1cost imported inputs
selling price of good without taxes
Services (%) = cost of skilled local labor force
total cost of manpower

x 100

x 100

Examples of Results

Industry Performance

Instrumentos de Pol
Poltica Industrial

Instrumentos de Pol
Poltica Industrial

Financiamento

Regula
Regulao

Financiamento

Regula
Regulao

Sustainability

Pol
Poltica
Tribut
Tributria

Fostero
Pequena e
Mdia Empresa

Pol
Poltica
Tribut
Tributria

Fostero
Pequena e
Mdia Empresa

Safety,
Environment
and Health

Competitiveness

Competitiveness Study of Goods and Services for Oil and Gas Market

Competitiveness Study of Goods and Services

Supplier Industry of Oil and Gas Market

Competitiveness Study
2008
Competitiveness
World
Class

Industrial
Sectors

18 industrial sub-sectors
2 perspectives:
Technical-Industrial
Qualification
Tax and labor
legislation, financing
and guarantees

National Industry Competitiveness Diagnosis

General Competitiveness Roadmap

Sources: UFRJ Economy Institute and Petrobras

National Industry Competitiveness Diagnosis

Medium Level Competitiveness Sectors

Expansion of
Production Capacity

Technology update /
Association with foreign companies
Sources: UFRJ Economy Institute and Petrobras