We give local ideas global opportunities Pål K Haugetun Senior Advisor Oil & Gas 21. Mai 2014
En LITEN historie.
Hei, Vi må virkelig understreke hvor nyttig det var for oss å ha med Martin på møtet med GDF Suez. Han forstår jo fransk språk og kultur meget godt, og hjalp oss med å tolke hvordan møtet gikk. Uten hans hjelp hadde det ikke vært så lett for oss å tolke franske "stenansikter". Martin mente det var et positivt møte, og det jo betryggende for oss å høre. I tillegg fikk vi mye positive tilbakemeldinger, samt tips om hva vi kan gjøre bedre mot neste møte. Dette ble kort og tydelig oppsummert i et møtereferat som han sendte oss etter møtet. Takk for at du tipset oss om å ha med en fra INs Paris-kontor. Det viste seg å være til stor hjelp! Ha en fin ettermiddag. Mvh
Topics: About Innovation Norway Norway and Brazil Business challenges The Brazilian Market
Innovasjon Norge Realiserer verdiskapende næringsutvikling i hele landet NOK 3 400 000 000 Flere gode gründere Flere vekstkraftige bedrifter Flere innovative næringsmiljø 42 750 9 000
Verktøykassen Finansiering Profilering Kompetanse Nettverk Rådgivning 6
Bruk internasjonale IFU! Norsk + bedrift Krevende kunde i Brasil = Innovasjon Norge betaler inntil 45% av kostnadene i utviklingsprosjekter.
IFU/OFU-modellen Tilbud: Nytt/forbedret produkt/løsning IFU/OFU-kontrakt Behov: Dekkes ikke av eksisterende tilbud i markedet Kompetent norsk leverandørbedrift Pilot kunde SMB med vekstambisjoner Markedsdrevet innovasjon Privat eller offentlig virksomhet 8 Innovasjonshøyde Markedspotensial Gjennomføringsevne Utløsende Spesifikasjoner Referanse Markedskanal
Innovation Norway s offices abroad Offices: Brazil Bulgaria Canada China (2 offices) Denmark Estonia Finland France Germany India (soon 2 offices)) Indonesia Italy Japan Kenya Korea Malaysia Poland Romania Russia (2 offices) Offices: Singapore South Africa (2 offices) Spain Sweden The Netherlands Turkey United Kingdom USA (4 offices) Vietnam Associated Partners: Hungary Thailand UAE (Dubai) Bangladesh Latvia Lithuania 9
Hva kan utekontorene til Innovasjon Norge hjelpe dere med?
Marked Insight Målgruppe: Bedrifter med ambisjoner om å satse i Brasil. Informasjonsbehov: - Trenger innsikt i hvordan markedet fungerer - Hvilke muligheter eksisterer - Hvilke barrierer eksisterer 11
Marked Insight Hva får bedriften: - Market Overview tilpasset rapport -Market Visit 2-3 dagers effektiv besøksprogram med «friendly meetings», feltstudier, etc. Pris: 100 timer, 30 000 50 000 NOK 12
Marked Entry & Growth Målgruppe: Bedrifter som har tatt en kvalifisert avgjørelse om ekspansjon internasjonalt. Mål: - Redusere risiko - Raskere nå kommersiell suksess 13
Marked Insight Bistand til: - Søking etter samarbeidspartnere (Partner Search) og kunder. - Markedsundersøkelser - Veiledning til lokal ekspertise - Profilering 14
Koblende www.datametrix.no
Innovation Norway in Brazil Based in Rio de Janeiro together with the Norwegian Consulate General 12 employees Innovation House Rio: Incubator providing «soft landing» for >10 Norwegian companies Business development support Network events Press trips/reputation building Projects for SMBs subsidized according to EU rules 16
Prioritized sectors in the Brazilian market: Oil&Gas Maritime Energy&Environment From 2013 Travel&tourism project 17
Meet the team Helle Moen, Director Brazil Paal Hovland, Senior Advisor Renata Ferreira, Senior Project Manager and Head of Sector Maritime Guilherme Mendes, Project Manager Pilar Neves, Jr. Project Manager Stefani Lima, Receptionist Rune Andersen, Senior Advisor Renata Costa Prado, Senior Project Manager and Head of Sectors Oil & Gas and Travel& Tourism Martin Nietz, Senior Project Manager and Head of Sector Energy & Environment Rodrigo Bastos, Administration, IT and HR responsible Flávia Ambrosano, Incubator Coordinator
Innovation House Rio Soft landing space for Norwegian companies in Rio de Janeiro Three different types of offices, in accordance with the client s needs. Standard Office (or Plus): individual office space including all services; Work Station: common area with an individual workstation including all services; Flex Office: physical Brazilian address and phone with answering service, including six weeks during the year and meeting room access; Networking with other companies and Team Norway Market related events Practical support
Norsk næringsliv internasjonalt trenger ofte hjelp fra norske myndigheter Å satse internasjonalt er vanskelig og kostbart Ting Tar Tid, Money Talks Kulturforskjeller må kjennes og respekteres Erfaring fra Singapore har liten verdi i Sør-Amerika? Erfarne folk vet å sette pris på hjelp fra ambassader og konsulater: Oversikt over relevant utvikling i markedet FoU-samarbeid Kunnskap om risikofaktorer Kunnskap om lokale spesielle forhold (lokalt innhold, arbeidslivsreguleringer etc.) Døråpnere Nettverksbyggere Samtalepartnere
Our strength is the networking
Typical Brazil challenges Norwegian companies meet Not one single market federation of states with large degree of local control Market imperfections Political control of companies (ref Petrobras) Local content Lack of competent work force Corruption Bureaucracy Visa Company establishment 3-12 months Taxes Customs Labor legislation Administration burden Language barrier Cultural differences larger than you may think
Cultural understanding is challenging Do not underestimate the cultural barriers
Norway and Brazil Brazil is one of the the world s largest offshore oil&gas market As is Norway Brazil is the 3rd largest single market for Norwegian suppliers (27 billion NOK) and growing Korea and UK are bigger today Norwegian companies have invested more than 20 billion USD in Brazil Norway is the 7th largest investor (FDI) in Brazil More than 100 Norwegian companies operating in Brazil BN21 agreement signed November 2013 cooperation in RD&I Several MoUs between Norwegian and Brazilian clusters Source: Rystad Energy, INTSOK, Own report, E&Y
Brazil: economy and industry Strong domestic market Growing middle class Vast amount of natural resources Stable and secure banking sector Strong institutions (BNDES) Poor infrastructure Lack of qualified labor Red tape Dependency on commodity prices Low productivity SWOT Great potential still to be unleashed Foreign investments due to megaevents New oil discoveries BRICS growing is at a fast pace Lack of long-term planning Inflation Currency under- or overrating Corruption
O&G Market Overview TOTAL PROJECTED INVESTMENTS: APPROXIMATELY USD 270 BILLION PETROBRAS APPROX. USD 237 BILLION THE OIL FIELDS OPERATED BY PETROBRAS PROVIDE AROUND 92% OF OIL AND NATURAL GAS PRODUCTION- 91.9% OF TOTAL OIL PRODUCTION AND 72% OF NATURAL GAS PETROBRAS VERY DEMANDING INVESTMENT PROGRAM IS WILLING TO FULFIL THE PLAN OF REACHING 4.2 MMBPD IN 2020 (TODAY IS 1.9 MMBPD). WHEN IT COMES TO OTHER OPERATORS PRESENT IN BRAZIL: REPSOL: IMPORTANT DISCOVERIES IN PÃO DE AÇUCAR, GÁVEA AND SEAL. STATOIL HAS NEW INVESTMENTS PREDICTED IN CAMPOS BASIN (4 BLOCKS AWARDED DURING THE 11TH ROUND AS OPERATOR) BOTH BG WITH 10 NEW BLOCKS AND TOTAL WITH 6 BLOCKS ARE GOING TO BE RELEVANT PLAYERS SHELL IS DEVELOPING BM-5-54 AND IS STARTING NEW PHASES FOR PARQUE DAS CONCHAS AND BIJUPIRÁ SALEMA. BG/GALP/REPSOL DEMANDING INFRASTRUCTURE FOR THEIR OWN LOGISTICS CHINESE PLAYERS ARE COMING TO BRAZIL INITIALLY AS INVESTORS 27
Maritime Sector Market Overview Brazilian Market is very dominated by Petrobras and strongly connected to the Oil & Gas investment Plans USD 40 billion will be invested in the shipbuilding industry until 2020. The exploration of pre-salt will guarantee at least 20 years of orders. 1 st Pre-Salt Bidding Round Oct 2013 - Libra Libra will require 12 to 18 FPSOs and 60 to 90 supply vessels. Local content ranging from 37% in the exploratory phase to 59% in the 2 nd development phase. 9 new shipyards under implementation in different regions of the country. Lack of shipyards focusing on maintenance and repair. 23 supply boats to be built in Brazil hired by Petrobras through its fleet renewal program (Prorefam). New round is expected by the market soon. Transpetro fleet renewal program (Promef) back on track after delays in the deliveries, last delivery was 2 months delayed. First delivery was 2 years delayed. 5 tankers delivered. A 3 rd phase is expected in the near future to support Libra operation. Source: Sinaval, Petrobras, Valor, Portos e Navios, Brasil Energia
Energy Generation Abundance of natural resources (water, natural gas, oil, radiation, wind, minerals etc.) Energy generation strongly dominated by hydropower (large and small) Other important alternative energy sources are Biomass from Sugar Cane and Wind Power Efforts in diversifying matrix with solar energy and Waste to Energy USD 235 billion of investments in renewables and biofuels within next 10 years Tariff for sold energy increased from approx. US$ 45/MWh to US$ 60/MWh from 2012 to 2013 New tougher rules for GTD licenses (MP 579) in 2013, implemented by the government to decrease energy tariffs for private, commercial (18%) and industrial (up to 32%) use caused worries for international investors (e.g. Eletrobras-Skagen case) Consumption by Sectors: Source: EPE
Brazil: country overview Capital: Brasilia Area: 8,515,767 km 2 (5 th largest in the world) Population: 201 million Language: Portuguese Government type: Federal presidential constitutional republic Current President: Dilma Rousseff (Labour Party PT) Religion: Roman Catholicism (65%), Protestantism (22%), Atheists (8%), Spiritism (2%), Others (3%) Borders: Uruguay, Argentina, Paraguay, Bolivia, Peru, Colombia, Venezuela, Guyana, Suriname, French Guiana Currency: Brazilian Real R$ Economy: 7 th largest in the world
Brazil: social indicators Mobile phones: 260mi mobiles Internet access: 83,4mi users Unemployment: 5,4% Literacy: 90,9% Expected average school time: 7,3 years 13.000 PhD released every year Population below poverty line: 8,5% GINI: 51,9 (2012) Social class Family income (BRL/month) A 13.560 B 6.780,00 13.559,99 C 2.712,00 6.779,99 D 1.356,00 2.711,99 E 1.355,99 *Exchange rate (January 2014): USD 1 = BRL 2,40
Brazil: the five regions Brazil is divided in five different regions in accordance with several socio-geographic characteristics. The population is more concentrated alongside the coast. North: widest land extension, lowest density of population in the country. Most of the area is covered by the Amazon Forest. Northeast: poorest and less developed region in the country. Wide potential for wind energy. Middle West: extensive livestock and agricultural activities. Region with highest growth rate in the country. Southeast: richest and most populated region. Agriculture, oil & gas and other industrial activities. South: highest social indexes of the country. Livestock and industry are the strengths of this region.
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