Brazil: The PROMINP Program, PETROBRAS ’ Local Content ... · Brazil: The PROMINP Program,...

Brazil: The PROMINP Program, Brazil: The PROMINP Program,

PETROBRASPETROBRAS’’ Local Content Policy Local Content Policy

and Maritime Equipment Demandsand Maritime Equipment Demands

Opportunities for Suppliers Opportunities for Suppliers

Houston, Texas

6th to 9th May 2013

Agenda

PROMINP: O&G Brazilian Industry Mobilization Program

PETROBRAS' Local Content Policy

Offshore and Maritime Equipment Demand

Brazilian Main Shipyards

Apresentação ao Comitê Diretivo

PROMINP: O&G Brazilian Industry Mobilization ProgramPROMINP: O&G Brazilian Industry Mobilization Program

May 2013May 2013

PROMINP’s Mission

““Maximize goods and services Maximize goods and services national national

industryindustry content, within content, within competitive competitive

andand sustainablesustainable basis, in the basis, in the

implantation of oil and gas projects in implantation of oil and gas projects in

Brazil and abroad.Brazil and abroad.””

SteeringCommittee

Oil, Natural Gas and Renewable Fuels Secretariat

Executive Committee

Executive Coordinator

MME – MinisterMDIC – MinisterPETROBRAS – President and Services DirectorONIP – CEO/PresidentBNDES – PresidentIBP – President

MME – Oil, Natural Gas and Renewable Fuels SecretariatMDIC – Development, Industry and International Trade SecretariatBNDES - DirectorPETROBRAS – Engineering Executive ManagerPROMINP – Executive Coordinator ONIP – DirectorIBP – DirectorAssociations – President / Director (ABCE, ABDIB,

ABEMI, ABIMAQ, ABINEE, ABITAMSINAVAL e CNI)

Sectorial CommitteeExploration

& ProductionG&P and Pipelines

DownstreamMaritime

Transportation

P&G IND

PETROBRASIBPBNDES

Prominp

Management Structure

Strategic Subjects

Prominp Projects Portfolio

CHALLENGE

Maximize Local

Content

Sustainability Competitiveness

Safety, Environmentand Health

Industry Performance

Tax Policy

Financing Regulation

Foster micro and small

companies

Industrial Policy

IndustrialCapacity

ProfessionalQualification

Technological Qualification

Qualification

E&P MT Downstream GP&Pipelines O&G IND Environment Technology

Strategic Subjects

Sustentabilidade Competitividade

SMS

Desempenho Empresarial

Política Tributária

Financiamento Regulação

Fomento àPequena e

Média Empresa

Instrumentos de Política Industrial


SMS




Fomento àPequena e

Média Empresa


Suppliers Development

IndustrialCapacity



Qualification

Examples of Results

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

Objective

Cases of success (examples)

Lifeboats nationalization(E&P-11)

Offshore cranes nationalization(E&P-11)

Suppliers Development




Tributary Policy


Foster micro and small

companies

Industrial Policy

IndustrialCapacity



Qualification

Professional Qualification Plan



Enterprise Performance

Tributary Policy


FosterSmall andMedium

Enterprise

Industrial Policy

Examples of Results

Establishment of the National Professional Qualification Plan – PNQP

Advanced

Regular

Level of the Professional Category

High Specialization

• Examples: Production operators, etc.;

• High investments in infrastructure for the viability of professional qualification;

• Only experienced professionals.

• Examples: Cargo Operator, inspectors etc.;

• Only experienced professionals.

• Examples: Engineer, Technician, Electrician, etc;

• Professionals with or without experience.Str

uc

turi

ng

of

pro

fess

ion

al C

are

ers

EXAMPLES OF DEMANDED PROFESSIONAL CATEGORIES

Lack of qualified

professionals to

respond competitively

BOTTLENECKBOTTLENECK

“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.”

ACTIONACTION

Establishment

of PNQP

(2006)

PROFESSIONAL GAPS IDENTIFICATION


SMS


Tax Policy


Foster microand small

companies

Instruments of Industrial Policy

Capacitação Industrial

Qualificação Profissional

CapacitaçãoTecnológica

Capacitação


SMS




Fomento àPequena e

Média Empresa


Funding mechanisms for working capital

Results

Financing Mechanisms

PROGREDIR FIPsPrivate equity funds

FIDCsInvestment Funds in Receivables

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

� 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.

� Fund of “Private Equity”

� 1 Operating Fund - net worth

of U.S. $ 500 million.

� Financing the supply chain;

� 10 participating banks;

� 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.


SMS


Capacitação Industrial

Qualificação Profissional

CapacitaçãoTecnológica

Capacitação


SMS




Fomento àPequena e

Média Empresa


Local Content Booklet

Tax Policy


Foster microand small

companies

Industrial Policy

Examples of Results

• 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 (%) = 1- cost imported inputs x 100

selling price of good without taxes

Services (%) = cost of skilled local labor force x 100

total cost of manpower

Local Content Booklet (“Cartilha”)

Main Concept




PolPolPolPolíííítica tica tica tica TributTributTributTributááááriariariaria

FinanciamentoFinanciamentoFinanciamentoFinanciamento RegulaRegulaRegulaRegulaççççãoãoãoão

Fostero Fostero Fostero Fostero ààààPequena e Pequena e Pequena e Pequena e

MMMMéééédia Empresadia Empresadia Empresadia Empresa

Instrumentos de PolInstrumentos de PolInstrumentos de PolInstrumentos de Políííítica Industrialtica Industrialtica Industrialtica Industrial

PolPolPolPolíííítica tica tica tica TributTributTributTributááááriariariaria

FinanciamentoFinanciamentoFinanciamentoFinanciamento RegulaRegulaRegulaRegulaççççãoãoãoão

Fostero Fostero Fostero Fostero ààààPequena e Pequena e Pequena e Pequena e

MMMMéééédia Empresadia Empresadia Empresadia Empresa

Instrumentos de PolInstrumentos de PolInstrumentos de PolInstrumentos de Políííítica Industrialtica Industrialtica Industrialtica Industrial

Competitiveness Study of Goods and Services for Oil and Gas Market

Examples of Results

Competitiveness Study2008

Competitiveness

Industrial Sectors

World Class

• 18 industrial sub-sectors

• 2 perspectives:

• Technical-Industrial Qualification

• Tax and labor legislation, financing and guarantees

Competitiveness Study of Goods and Services

Supplier Industry of Oil and Gas Market

Sources: UFRJ – Economy Institute and Petrobras

National Industry Competitiveness Diagnosis

General Competitiveness Roadmap

Sources: UFRJ – Economy Institute and Petrobras

Expansion of Production Capacity

Technology update / Association with foreign companies

National Industry Competitiveness Diagnosis

Medium Level Competitiveness Sectors

Brazil: The PROMINP Program, PETROBRAS ’ Local Content ... · Brazil: The PROMINP Program,...

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