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Financing the Brazilian Maritime Sector
Luís André Sá d’OliveiraHead of O&G DepartmentOctober / 2017
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Estabilished in 1952.
100% state-owned company under private law.
Key instrument for implementation of Federal Government’s industrial and infrastructure policies.
Main provider of long-term financing in Brazil.
Emphasis on financing investment projects.
Team of 2,800 employees
Robust processes and structure regarding compliance and risk management
New operational policy since January, 2017: priorities focusing on projects qualifiers (innovation, sustainability, health, education, infrastructure, exports, SMEs).
General Information// Highlights
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Companies: agro-business, industry, trade and services etc.
Cooperatives or associations
NGOs, OSCIPs or Foundations
Rural producer
Truck drivers
Micro-entrepeneur
LEGAL ENTITIES ESTABLISHEDIN BRAZIL
BRAZILIAN PRIVATE INDIVIDUALS
BRAZILIAN PUBLIC MANAGEMENT
Municipalities
States
Federal
Operations and Policies // Who can apply
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DIRECT TRANSACTIONS
Companies financed directly by BNDES
Power Plants SanitationIndustriesOil and GasExamples
ENTERPRISE
How we Work // Direct Operations
Maritime
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FMM (Merchant Marine Fund)
Companies financed directly by BNDES with FMM Funding
PLSV AHTSOSRVPSVExamples
ENTERPRISE
How we Work // FMM Funding
Shipyards
FMM
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FMM Main Terms and Conditions
Term: up to 4 years of grace period and up to 20 years of amortization.
Sector NationalContent
ParticipationUp to Financial
cost
Spread (%)
NationalItems
ImportedItems
NationalItems
ImportedItems
Cabotage≥ 65%
90%
90%
TLP orUS$
2 - 3,75 3 - 4,75
< 65% 70% 2 - 3,75 4 - 5,8
Tug≥50% 75% 2 - 3,75 3 - 4,75
< 50% 60% 2 - 3,75 4 - 5,8
OSV≥ 60% 70% 2 - 3,75 3 - 4,75
< 60% 60% 2 - 3,75 4 - 5,8
Dry Docking - 90% 3 - 4,75
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How we Work // Financial Instruments
• BNDES Financial Instruments:
• Financing Fixed Assets: Machinery and Equipment; Implement investment production capacity; Increase of goods and services supply capacity;
• Project Finance;
• Export Financing;
• Equity;
• Innovation.
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Performance and Financial Data // Annual Disbursements
9BNDES O&G & Maritime Sector Potfolio
10BNDES Maritime Sector Support
11BNDES Shipyard/Tankers Support
20 Tanker Ships
2 Large Shipyards
5 Integrated Shipyards
12BNDES Offshore Vessels Support
79 PSV - Platform Supply Vessels
14 AHTS – Anchor, Handling, Tug and Supply
5 OSRV – Oil Spill Recovery Vessels (OSRV)
15 FSV – Fast Supply Vessels
4 PLSV – Pipe LayingSupport Vessels
3 LH – Line HandlingVessels
13BNDES Offshore Clients Portfolio
14BNDES Support to the Maritime Sector
• OSV Daily Rates have fallen almost 50% in Brazil since
peak oil prices in 2014.
• Brazilian Offshore Fleet : up to 20% idleness.
• BNDES helping to find solutions (debt restructuring for
companies with relevant liquidity issues) :
• Joint and proportional efforts from all stakeholders.
• Repricing and reinforcement of guarantees.
• Temporary relief only on repayment, interests
preserved.
• Cash sweep mechanism.
• Covenants.
15Sector challenges – Cumulative Global Deepwater Resources Discovered
Presalt oilThe world's largest oil discoveries
in recent years are in Brazil's offshore, presalt basins.
(US EIA, DOE)
50%+ of the world's discoveries from 2005 to 2010 were in deep waters.
Brazil accounted for 63% of the findings in the period.
16Sector challenges – The Oil and Gas Sector currently
• Brazil is the 12th largest oil producer in the world and93.4% of the national production is offshore.
• 15th largest world reserve - possibly 7th with the presalt.
• GFCF O&G weight in jumped from 3.5% in 2000 to morethan 10% in recent years.
• Despite Petrobras' investments, reduction the Brazilian market for offshore goods and services willremain very important in the world.
• Until 2020, more than US$ 83 billion are expected to be invested in the Brazilian O&G sector.
17Sector challenges – Presalt
• The presalt is the main ultra deep waters reserve in the world.
• The presalt wells have high productivity and high quality oil (currently 36
thousand bbl/day and with an expected up to 45 thousand bbl/day).
• The cost of presalt extraction is decreasing - increasing its attractiveness.
• Libra Field Breakeven target – US$ 35/bbl.
18Investment Perspective (2020)
US$ billion
Brazilian Bidding Round in O&G sector.
Privatization of gas distributors.
Investment in Infrastructure.
19Sector challenges – Final Words
• Flexibilty to adjust to low price scenarios.
• Main Goals:• Reduce investment costs/OPEX;• Increase productivity and flexibility;• Develop new technologies (subsea factory).
• BNDES is prepared to support the oil and gas industry and foster the supply chain.• BR Presalt is robust and sustainable.
Thank You!
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Contact Center0800 702 6337Chamadas internacionais+55 21 2172 6337
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Contact uswww.bndes.gov.br/faleconosco
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