100 YEARS OF SHELL IN BRAZIL: PROSPECTING FOR … - flavio rodrigues.pdf · Forward-looking...
Transcript of 100 YEARS OF SHELL IN BRAZIL: PROSPECTING FOR … - flavio rodrigues.pdf · Forward-looking...
Copyright of INSERT COMPANY NAME HERE
100 YEARS OF SHELL IN BRAZIL: PROSPECTING FOR THE FUTURE
Presentation at the British Consulate in Rio de Janeiro March 11th
Flavio Rodrigues Shell Brasil Petróleo Ltda.
January 2013 1
Copyright of INSERT COMPANY NAME HERE
DEFINITIONS AND CAUTIONARY NOTE
2
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. “Shell Brasil Petróleo Ltda”, ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this presentation, associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended 31 December, 2012 (available at www.shell.com/investor and www.sec.gov - opens in new window). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all.
Copyright of INSERT COMPANY NAME HERE
SHELL IN THE WORLD
3 outubro 2012
Largest global revenue, according to ‘Fortune’: US$ 484.5 bn in 2011
Production of 3.2 million barrels/day, equivalent to 2% of global oil
Recognised for technological innovation and delivery of megaprojects
Investment of US$ 1.1 billion per year in research and development
Innovative partnership with Ferrari in Formula 1
Sale of transport fuels to more than 10 million consumers a day
Production of 3% of global gas consumption (of which 48% is natural gas)
Present in over 80 countries, with 90,000 employees
Copyright of INSERT COMPANY NAME HERE
100 YEARS OF HISTORY IN BRAZIL
4 outubro 2012
At the beginning, it was Anglo-Mexican
Gasoline pump at a garage
Donkeys being used to transport fuel
One of the first Shell service stations in Brazil
Former headquarters in Praça Quinze (from 1929 to 1958)
Copyright of INSERT COMPANY NAME HERE
ON THE GROUND AND IN THE AIR
5 outubro 2012
PIONEER IN AIRCRAFT REFUELLING…
AND IN HAVING A PRESENCE IN BRASÍLIA, BEFORE IT BECAME THE CAPITAL CITY
AND IN HAVING A PRESENCE IN BRASÍLIA, BEFORE IT BECAME THE CAPITAL CITY
Copyright of INSERT COMPANY NAME HERE
THE STRENGTH OF THE BRAND
6 October 2012
4,600 Raízen service stations, the joint venture between Shell and the Cosan Group
Copyright of INSERT COMPANY NAME HERE
THE JOINT VENTURE
Market value of US$ 12 billion
Production of more than 2 billion litres/annum of ethanol from sugarcane, the cleanest commercial biofuel
More than 40,000 employees
7 October 2012
Copyright of INSERT COMPANY NAME HERE
LUBRICANTS
8 October 2012
Plant in Ilha do Governador (Icolub)
Annual production of 174 million litres
14% of the national lubricants market
Product portfolio:
Advanced ranges for passenger cars (Helix) and motorcycles (Advance)
Other ranges: Rimula, Donax, Spirax and Gadus
Copyright of INSERT COMPANY NAME HERE
SF-T-80 (R10) Shell (60%)* Vale (40%)
SF-T-81 (R10) Shell (60%)* Vale (40%)
SF-T-82 (R10) Shell (60%)* Vale (40%)
SF-T-83 (R10) Shell (60%)* Vale (40%)
SF-T-93 (R10) Shell (60%)* Vale (40%)
BM-S-54 (R7) SM-518
Shell (80%)* Total (20%)
Bijupirá & Salema (R0) Shell (80%)* PBR (20%)
Abalone, Argonauta, Nautilus & Ostra (R0 - Former BC-10
Block) Shell (50%)* PBR (35%)
ONGC (15%)
BM-ES-27 (R7) (ES-M-411/437/436)
PBR (65%)* Shell (17.5%) Vale (17.5%)
BMES-23 (R6) (ES-M-525) PB (65%)* Shell (20%) Inpex (15%)
Shell-operated fields
Shell-operated blocks
Shell interest
EXPLORATION & PRODUCTION AREAS
October 2012 9
Copyright of INSERT COMPANY NAME HERE
FUTURE PROSPECTS
11 October 2012
May:11th bidding round November: pre-salt bid October : Onshore BR(?)
Generate jobs and income Develop the industry
Copyright of INSERT COMPANY NAME HERE
THE CHALLENGE: LOCAL CONTENT
13 outubro 2012
… but it’s a long journey
Government policy
Support of the oil and gas industry
Supplier training
Adjustments to the model
Incentive for operators
Emergence of globally competitive national suppliers
Part of the Shell principles…
Copyright of INSERT COMPANY NAME HERE
SHELL BRASIL LOCAL CONTENT STRATEGY
14
Shell supports Local Content Development on a competitive basis;
Shell will comply with existing regulation and will seek to influence the regulatory environment to be more flexible and/or to consider incentives rather than penalties to foster the delivery of Local Content;
Shell will actively focus on delivering Local Content beyond legal requirements in its operations in Brazil.
Small investments that may create greater impact in the future
Date 22/03/2013
BRAZIL INDUSTRY INVESTMENT
Brazil Upstream Annual Investment ($bln) Pre-Salt
The local environment has changed along the years and the exploratory success has added an extra challenge to the Brazil Supply Chain.
Roun
d 0
Roun
d 1
Roun
d 5
Roun
d 7
PROMINP study based on Petrobras Business Plan 2012-2020 15
Copyright of INSERT COMPANY NAME HERE
BRAZIL O&G INDUSTRY – CHALLENGES
Challenges to attend Brazil O&G Industry and Local Content Growing Demand
PROMINP study based on Petrobras Business Plan 2012-2020
1
7
Social&Economical
Atractiveness Greater Lower
- +
Prioritization Matrix
Lower
Greater
Dem
an
d*
+
-
1 2
3
4
5
6
7 8 9
10
11
9 11
9 11
9 11
11
Prioritization Matrix
Copyright of INSERT COMPANY NAME HERE
SUPPLIERS MARKET DEVELOPMENT PROGRAMME
“A JOURNEY TOWARDS ROBUST AND SUSTAINABLE LOCAL CONTENT
DELIVERY IN BRAZIL”.
Copyright of INSERT COMPANY NAME HERE
SHELL INICIATIVES FOR LOCAL CONTENT
19 October 2012
Stratigraphic tank in partnership with the Federal University of RS
São Francisco Basin: priority given to local
workers Parque das Conchas: 36%
local content