Oil and Gas IndustryOil and Gas Industry in Brazil

- Business Opportunities -- Business Opportunities -

Oil and Gas IndustryOil and Gas Industry in Brazil

- Business Opportunities -- Business Opportunities -

Copenhagen , June 20th, 2003

Alberto Machado Neto

BRAZILBRAZILBRAZILBRAZIL

• IDIOM: PORTUGUESE IDIOM: PORTUGUESE

• AREA: 8.514.000 KM2AREA: 8.514.000 KM2

• INHABITANTS: 170 INHABITANTS: 170

MILLIONMILLION

• GROSS DOMESTICGROSS DOMESTIC PRODUCT: US$ 500 BILLIONPRODUCT: US$ 500 BILLION

• IDIOM: PORTUGUESE IDIOM: PORTUGUESE

• AREA: 8.514.000 KM2AREA: 8.514.000 KM2

• INHABITANTS: 170 INHABITANTS: 170

MILLIONMILLION

• GROSS DOMESTICGROSS DOMESTIC PRODUCT: US$ 500 BILLIONPRODUCT: US$ 500 BILLION

BRAZILIAN ECONOMIC BRAZILIAN ECONOMIC SCENARIOSCENARIO

BRAZILIAN ECONOMIC BRAZILIAN ECONOMIC SCENARIOSCENARIO

• International Economic IntegrationInternational Economic Integration• Economic StabilizationEconomic Stabilization• State Modernization & DeregulationState Modernization & Deregulation• President LulaPresident Lula

BUSINESSES OPPORTUNITIES

• International Economic IntegrationInternational Economic Integration• Economic StabilizationEconomic Stabilization• State Modernization & DeregulationState Modernization & Deregulation• President LulaPresident Lula

BUSINESSES OPPORTUNITIES

ConsumptionConsumption

1.7 million bpd1.7 million bpd

1.6 million bpd1.6 million bpd

THE BRAZILIAN OIL & THE BRAZILIAN OIL & GAS MARKETGAS MARKET

THE BRAZILIAN OIL & THE BRAZILIAN OIL & GAS MARKETGAS MARKET

Domestic Domestic ProductionProduction

DomesticDomestic

ProcessingProcessing

1.9 million bpd1.9 million bpd

PRESENT SCENARIOPRESENT SCENARIO

THE BRAZILIAN THE BRAZILIAN OIL & GASOIL & GAS PRODUCTIONPRODUCTION

EXPANSION:EXPANSION: ((NEXT 5 YEARS)NEXT 5 YEARS)

OIL: FROM 1.6 to 2.2 MM b/dOIL: FROM 1.6 to 2.2 MM b/d

GAS: FROM 38 to 80 MM mGAS: FROM 38 to 80 MM m33/d/d

PROCESSING: FROM 1.7 TO 1.9 MM PROCESSING: FROM 1.7 TO 1.9 MM

b/db/d

THE BRAZILIAN THE BRAZILIAN OIL & GASOIL & GAS PRODUCTIONPRODUCTION

EXPANSION:EXPANSION: ((NEXT 5 YEARS)NEXT 5 YEARS)

OIL: FROM 1.6 to 2.2 MM b/dOIL: FROM 1.6 to 2.2 MM b/d

GAS: FROM 38 to 80 MM mGAS: FROM 38 to 80 MM m33/d/d

PROCESSING: FROM 1.7 TO 1.9 MM PROCESSING: FROM 1.7 TO 1.9 MM

b/db/d

BUSINESS BUSINESS OPPORTUNITIESOPPORTUNITIES

BUSINESS BUSINESS OPPORTUNITIESOPPORTUNITIES

INVESTMENTS: (2001 - 2010)

OIL: US$ 85 BILLION

GAS: US$ 15 BILLION

ENVIRONMENTAL: US$ 5

BILLION

INVESTMENTS: (2001 - 2010)

OIL: US$ 85 BILLION

GAS: US$ 15 BILLION

ENVIRONMENTAL: US$ 5

BILLION

BUSINESS OPPORTUNITIESBUSINESS OPPORTUNITIES IN THE IN THE OIL & GASOIL & GAS

BUSINESS OPPORTUNITIESBUSINESS OPPORTUNITIES IN THE IN THE OIL & GASOIL & GAS

FORTHCOMING PROJECTS:• EXPLORATION & PRODUCTION

PETROBRAS : 27 (E) / 15 (P)

ANP ROUND 1: 12 BLOCKS (E&P)

ANP ROUND 2: 21 BLOCKS (E&P)

ANP ROUND 3: 34 BLOCKS (E&P)

ANP ROUND 4: 21 BLOCKS (E&P)

ANP ROUND 5: Next August (E&P)

UNTIL 2005 PETROBRAS WILL INVEST UNTIL 2005 PETROBRAS WILL INVEST

US$ 18 BILLION IN E & P PROJECTSUS$ 18 BILLION IN E & P PROJECTS.

FORTHCOMING PROJECTS:• THERMO ELECTRIC GENERATION

50 NEW GAS-FIRED PLANTS

• GAS-CHEMICAL (US$ 1 billion in 3 years)

• PROCESSING & REFINING 6 REFINERY REVAMPS (US$ 4.7 billion in 4 years)

1 NEW REFINERY (may be 2 or 3)

(US$ 2 billion in 4 - 5 years)

BUSINESS OPPORTUNITIESBUSINESS OPPORTUNITIES IN THE IN THE OIL & GAS OIL & GAS

BUSINESS OPPORTUNITIESBUSINESS OPPORTUNITIES IN THE IN THE OIL & GAS OIL & GAS

FORTHCOMING PROJECTS:

• TRANSPORTATION & SUPPLYING & DISTRIBUTION

OIL TANKERS ( > 20 in 5 years)

PSVs ( > 80 - 100 in 10 years)

PIPELINES ( US$ 1 - 2 billion in 5 years)

TERMINALS

LOGISTIC BASES

BUSINESS OPPORTUNITIES IN THE OIL & GAS

BUSINESS OPPORTUNITIES IN THE OIL & GAS

REGIONAL OPPORTUNITIESREGIONAL OPPORTUNITIESFOR THE SUPPLY INDUSTRYFOR THE SUPPLY INDUSTRYREGIONAL OPPORTUNITIESREGIONAL OPPORTUNITIESFOR THE SUPPLY INDUSTRYFOR THE SUPPLY INDUSTRY

INVESTMENTS IN OIL & GAS (2001 - 2010)

• LATIN AMERICA: 300 US$ BILLION

– BRAZIL: US$100 BIBRAZIL: US$100 BI • WEST AFRICA: 200 US$ BILLION

TOTAL: 500 US$ BILLION

POTENTIAL MARKET

MAIN LINKSMAIN LINKS

For more information about Brazilian Oil Industry:

WWW.ANP.GOV.BR

WWW.ONIP.ORG.BR

WWW.IBP.ORG.BR

WWW.PETROBRAS.COM.BR

Anticipating solutions

BRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLY

Brasil Supply S.A.• logistics services including full support

to onshore and offshore operations; • environmental services; • oil, water and gas treatment• drilling fluids technical services.

Its differential is to offer integrated solutions.

BRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLY

• Shareholders:– Petrobras Distribuidora S.A.– Cotia Trading S.A.– Cepemar S.A.– Promoc Ltda.

BRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLY

SERVICES PORTFOLIOTechnical services of formulation and

application of drilling and completion

fluids:• Fluid plant operation• Supply of specialized technical support

BRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLY

SERVICES PORTFOLIO

•Supply chain management•Port operations•Cargo storage and movement•Supply house operations•Supply of chemical products•Bulk liquid and solid handling•Container fleet management•Supply of drilling fluids

Logistics support for exploration and production activities:

Espírito SantoEspírito Santo

Espírito SantoEspírito Santo

Rio de JaneiroRio de Janeiro

BRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLY

SERVICES PORTFOLIO

•Supply chain management•Port operations•Cargo storage and movement•Supply house operations•Supply of chemical products•Bulk liquid and solid handling•Container fleet management•Supply of drilling fluids

Logistics support for exploration and production activities:

BRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLY

SERVICES PORTFOLIO

• Structured financial and operations• Tax planning and efficiency• Contracting freight and insurance• Customs clearance• General and customs warehouses• Separation of goods for different

destination and modal changes

Foreign trade operations:

BRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLY

SERVICES PORTFOLIO

• Treatment of effluents; (including for re-use in industrial processes)• Equipment rental;• Supply of specialized technical support.

Services associated with treatment of oil, water and gas:

BRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLY

SERVICES PORTFOLIO

• Environmental licensing processes• Evaluation of environmental impact• Environmental diagnosis• Risk analysis / contingency plans• Environmental monitoring• Appraisal and remediation of environmental liability• Oceanographic studies• Monitoring of liquid effluents• Classification and collection of residues• Recovery and treatment of oil in residues• Thermo-destruction and final destination of solid residues

Environmental services:

BRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLYBRASIL SUPPLY

PARTNERSHIP:

We are open to analyze partnership possibilities with Danish companies working in related areas.

THANK YOUTHANK YOUTHANK YOUTHANK YOU

amachado@brasilsupply.com.br