BNDES-apresentação-04_12_11

7/28/2019 BNDES-apresentao-04_12_11

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BNDES Financial Support for

Offshore Projects in Brazil

Dec, 2011 Rio de Janeiro


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Summary

BNDES and the Brazilian Oil and Gas Sector BNDES Shipbuilding Portfolio

BNDES Support for Brazilian Offshore Sector Offshore Vessels Shipyards FPSOs and Drilling Ships

BNDES and FMM Financial Conditions


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BNDES and the Brazilian Oil andGas Sector


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Oil & Gas Sector in Brazil

Brazilian Energy and Infrastructure Investments have so far notbeen affected by the international crisis.

Pre-salt discoveries - significant increase on the middle andlong term demand for equipments and services includingoffshore support vessels, oil tankers and rigs.

New legal framework key role of Petrobras, unique operatorfor pre-salt fields.

Petrobras investment plan huge amounts on upstream anddownstream activities.

Other companies investments in the post-salt fields e.g. OGX(48 production units).


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Principais Metas do BNDES no Setor Contribute to the development of the Oil & Gas Sectorincluding the Supply Chain.

Provide adequate funding and financial schemes to the Oil &

Gas projects. Support and coordinate institutional actions (PBM, PROMIMP,

etc).

Contribute to the increasing of the Brazilian local content inthe Oil & Gas projects.

BNDES Main Goals - Oil & Gas Sector


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BNDES Shipbuilding Portfolio and

Support for Brazilian Offshore Sector Offshore Vessels Shipyards FPSOs and Drilling Ships


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Fonte: IBGE. * BNDES (projeo).

Great development in the 70s, decay in 80s and 90s, recuperationin 00s. Now there are almost 90 vessels in construction in Brazil,much less than Asian producers.

Oil and gas sector main drive for the recent growth of theBrazilian shipbuilding offshore vessels (PROREFAM), oil tankers(PROMEF), drilling rigs (Petrobras bid).

Sustainable long term demand - offshore support vessels, oiltankers, oil platforms, tugs and barges.

Brazilian shipyards not sufficient to supply the demand investments needed on capacity increase - technology gaps

Brazilian marine supply chain not sufficient

necessity of newinvestments and development of this industry.

Brazilian shipbuilding competitiveness possible in the middleterm for some kind of projects.

Shipbuilding in Brazil


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BNDES Shipbuilding Portfolio

Portfolio 2006-2010 US$ 000 NumberProjectsNumberVessels

Oil Tankers Buyer s Credit 3,698,294 5 30

Oil Tankers Suppliers Credit 1,861,170 5 30

General Cargo 582,506 7 9Offshore Support Buyer s Credit 4,532,303 40 107

Offshore Support Suppliers Credit 939,818 7 12

Tugs 384,717 9 66

Shipyards 771,116 9 NA

Others 39,706 3 17

Total 12,809,633 85 271


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BNDES Annual ApprovalsOffshore Vessels

255,2364,03

203,73

370,74

575,35

184,79

657,31

2.818,96

0

1.000

2.000

2003 2004 2005 2006 2007 2008 2009 2010

Offshore Vessels 2003-2010(US$ million)


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Offshore VesselsRecent Financed Projects (2010)

19 PSVs (CBO Grupo Fischer)

15 PSVs and 4 AHTS (Bram - Edison Chouest)

8 PSVs and 5 AHTS (WSOffshore - Wilson Sons and Ultratug)

4 PSVs (Starnav - Detroit)

3 AHTSs (Dof Navegao - DOF)PSV (Platform Supply Vessel)

AHTS (Anchor Handling Tug Supply)


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OSCV e ROV VesselsFinanced Projects (2007-2010)

Skandi Salvador MPSV (Multipurpose Support Vessel) = ROV + AHTS + PSV)

Shipowner: Dof Subsea (DOF)

Skandi Vitria and Skandi Niteri OSCV (Offshore Subea ConstructionVessel) + Pipelayer Vessel

Shipowner: Dofcon (DOF+TECHNIP)


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BNDESApprovals for Transpetro/Atlntico Sul

Transpetro - Promef I (2007)23 Ships - 10 Suezmax; 5 Aframax;4 Panamax and 4 Product Ships.

Transpetro - Promef II (2010)7 Ships - 4 Suezmax and 3 Aframax.

Atlntico Sul Shipyard Processing capacity of 160,000 tons

per year of steel

Designed for the construction of large vessels, platforms, floatingstructures and conversions in the

offshore segment Located at the Industrial Complex of

Suape (Pernambuco)


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Gas Transmission andDistributionUrucu-Manaus, Gasene, CEGand Comgs .

E&P PlatformsMexilho e Manati

RefinaryRefap

Oil&GasFinanced Projects (2005-2010)


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Oil & Gas Sector Demand for Shipbuilding

Petrobras Investment Plan 2011-2015 shipbuilding demand(estimation)

Item New UnitsUntil 2015

New UnitsUntil 2020

Rigs (drillships and semisubs) 22 50

Platforms (FPSOs and semisubs) 17 50

Offshore vessels 192 281

PSV3000

PSV4500

OSRV AHTS15000

AHTS18000

AHTS21000

49 15 18 10 46 8

PROREFAM III: 146 new offshore vessels


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Platforms (FPSOs and SemiSubs)


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8 FPSOs will be necessary to support the oil and gas production in the

BM-S-9 (Petrobras, BG Group and Sinopec-Repsol) and BM-S-11

(Petrobras, BG Group and Galp Energia) blocks in Santos Basin.

The construction will be divided into 3 phases: the hulls, the top side

and the integration. The hulls are being built in Rio Grande Shipyard (RS) by Ecovix.

At least 70% of local content must be achieved in the construction of

these FPSOs. Considering the 3 phases of construction, 11,000 new jobs

must be generated. The total investment will be around US$ 14,1 billion.

FPSOs (Floating Production Storage and Offloading)


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Drilling Ships


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Petrobras will hire up to 28 new drilling ships, which must be

built in brazilian shipyards. The deliveries may occur between

2015-2020.

Atlantico Sul Shipyard (PE) has already won the bid and will

build the first 7 drillships. Sete Brazil is the owner of the

drillships.

LOCAL CONTENT INDEX 7 Drillships Package

System 1 e 2 3 e 4 5 a 7

Generation, Propulsion and DynamicPositioning System 40% 50% 60%

Drilling Package 20% 30% 50%

Local Content Index 55% 60% 65%

Drilling Ships


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BNDES and FMM Finance Conditions


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Total Interest Rate

=

Funding Cost

TJLP (Long Term Interest Rate) TJ-462 (TJLP + 1%) Currency Basket LIBOR IPCA

Financial Cost

Margin to cover operationalexpenses0.9 2.5% p.a.BNDES Basic Spread

+

+Credit Risk Rate

Margin to covernon-performing loans0.46 3.57% p.a.

BNDES Interest rate - Direct Operation

Oil & G d C i l G d


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Oil & Gas and Capital GoodsFinancing Conditions

Sector Financing Lines BasicSpread FinancialCost MaximumParticipation*

Oil & Gas

Oil Exploration 1.8% TJLP + 1% 60%

Oil Production and Refining 1.8% TJLP + 1% 60%

Gas Production 1.3% TJLP + 1% 60%

Gas Transportation andDistribution 1.3% TJLP + 1% 60%

Capital GoodsIndustry

Fixed investment, associatedworking capital and acquisitionof capital goods

0.9% TJLP 70%

* Over local content


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Shipbuilding Financing

Merchant Marine Fund (FMM) Treasury fund, managed by theMinistry of Transportation, which has accredited financialinstitutions (only Federal State-owned Banks).

Projects need to be eligible by the FMM Committee (CDFMM)before been analyzed by the accredited bank.

Supports vessel construction, jumborization and modernizationprojects, made on a brazilian shipyard.

Supports brazilian shipyard construction, enlarging andmodernization projects.

Holds for all eligible items, including imported equipments.


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Naval Construction Financing

Sector NationalContent

MaximumParticipation Financial

Cost

Total Spread (%)

NationalItems

ImportedItems

NationalItems

ImportedItems

Construction of OffshoreVessels

60%

90%

70%

TJLP or US$ 2 4,5

3 - 6

< 60% 60% 4 - 7

Construction of Cargo Vessels 65% 90% 3 - 6

< 65% 70% 4 - 7

Construction, Expansion andModernization of Shipyards

60% 75% 4 - 6

< 60% 60% 4 - 7

Merchant Marine Fund (FMM)

Period: up to 4 years of grace and 20 years of amortization


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Client: Special Purpose Company (SPC).

BNDES Maximum Participation: 75% of total assets.

Projected cash flow must support credit repayment on a

stand-alone basis. Debt Service Coverage Ratio (DSCR) greater or equal to 1.30

or DSCR greater or equal to 1.20, for projects with IRR greater

than 8% p.a.

Minimum equity: 20% of total investment budget.

Project Finance


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Collaterals and covenants usually requested operation phase Pledge of all future revenues to the lenders; Pledge of SPC shares;

Reserve Account; Financial covenants: debt service coverage ratio and indebtedness.

Collaterals and covenants usually requested

construction phase Completion Bond and Performance Bond; Parent Company Guarantee, Bank Guarantee and/or FGCN

FGCN is a Guarantee Fund for the construction risk from brazilianshipyards.

Project Finance (Collaterals)


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Special Projects drillships and FPSOs orders investiments of high unit value.

Special financial conditions, depending on the funding of eachoperation.

Possibility of support on a project finance basis

long termcontract is requested.

Possibility of using the FGCN as a guarantee (FGCN is aGuarantee Fund for the construction risk from Brazilian shipyards).

Co-financing usually requested

local content x importedcontent.

Cost: LIBOR + basic spread + risk spread

Support to Special Projects


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THANK YOU

Vinicius S. [email protected]

www.bndes.gov.br/english

BNDES-apresentação-04_12_11

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