100 years of shell in brazil: prospecting for … - flavio rodrigues.pdf · forward-looking...

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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


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.


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


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)


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


THE STRENGTH OF THE BRAND

6 October 2012

4,600 Raízen service stations, the joint venture between Shell and the Cosan Group


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


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


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


Phase 2

ON COURSE FOR PHASE 2

10 October 2012


FUTURE PROSPECTS

11 October 2012

May:11th bidding round November: pre-salt bid October : Onshore BR(?)

Generate jobs and income Develop the industry


LOCAL CONTENT

1

2

outubro

2012


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…


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


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


SUPPLIERS MARKET DEVELOPMENT PROGRAMME

“A JOURNEY TOWARDS ROBUST AND SUSTAINABLE LOCAL CONTENT

DELIVERY IN BRAZIL”.


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

100 years of shell in brazil: prospecting for … - flavio rodrigues.pdf · forward-looking...

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