Brazil - Norway - Brazilian-Norwegian Chamber of Commerce

Transcript Brazil - Norway - Brazilian-Norwegian Chamber of Commerce

Brazil: A market for Norwegian competence

Terje Staalstrøm President BNCC 1

Brazil - Norway

I – Brazil - sustainable economic growth II – Brazil - Norway: strengthening relations III – Opportunities in the maritime sector 2

World largest countries (Km2)

1. R ussia ………………17,075,200 2. Canada ………………9,984,670 3. U nited States ………. 9,826,630 4. China …………………9,596,960 5. Brazil ………………….8,511,960

Most populated countries

China

…………...1,335,700,000 2

India

…………....1,176,748,000 3

United States

……308,632,000 4

Indonesia

………..231,369,500 5

Brazil

………….…190,700,000

7th world economy in 2011 and 5th before the Olympic Games in 2016

Country ranking GDP (nominal)

Source: IMF (2010) Rank

1 2

Country

United States China

US$ M

14,624,184 5,745,133 3 4 5 Japan Germany France 5,390,897 3,305,898 2,555,439 6 7 8 United Kingdom Italy

Brazil

2,258,565 2,036,687 2,023,528

Brazil has the conditions to successfully see a long term growth cycle and to become one of the most dynamic world economies 12

Brazil Consolidating Democracy

From a Sociology professor to a metallurgical worker and to an economist, first woman President: social inclusion and equal opportunities.

137 million voters registered in the last elections 1995-2002 2003-2010 2011 - ……

Reduction of Inequality Brazil-v-US-inequality.png

2003 -2009 : 20 M lifted out of poverty. 15% of population still defined as poor. Target 2009 – 2013 : 20M more out of poverty 15

Summing up: Brazil in 2010 - GDP growth 7,5% (5% average next five years) - Unemployment 5.7% - Inflation 5,9% - Foreign reserves US$ 275 billion - FDI : US$ 30,2 billion - Exports: increase 32% - Exchange rate: 1 US$ = 1, 66 Reais 17

Part II

Brazil and Norway

Strengthening Relations

Historic Friendship

 Brazil was among the first countries to recognize the Kingdom of Norway in 1905  Since 19th century, Brazil has grown to become the largest importer of Norwegian dried salted cod fish (bacalao)  With the discoveries of large offshore oil & gas fields, Norwegian presence grew fast  Norway Brazil strategy to be launched 23.03

Mutual prosperity

 Through trade and services, Brazil and Norway have been contributing to the development and prosperity of each other's society  Over one hundred Norwegian companies do business with Brazil, most of them are established in the country. Their presence is growing in many sectors (energy, metallurgic, shipping, offshore equipment, pulp and paper, fertilizers and chemicals etc).  Brazil business presence in Norway is also growing (Rio Doce Manganese, Denofa, Norske Hydro) 20

Landmark years: High level contacts 

Visit of PM Stoltenberg to Brazil in 2008



State Visit of President Lula in 2007



State Visit of King Harald to Brazil in 2003

A number of visits from Brazilian and Norwegian Ministers and State Secretaries.

Norwegian Trade Delegations every year since 2007 21

High level business contacts 2007-2010

– President Lula seminar “Meeting of Energy Giants” - BNCC – CSR Conference in Oslo, with Petrobras and CVRD, São Paulo conference with NHO/FIESP, workshops – Seminar in Rio (INTSOK) and Rio Oil&Gas 2008 – Seminar on Biofuels, Cosan/Umoe – BNCC – Seminar on Aquaculture and Fisheries (AquaNor 2009), BNCC/Embassy – Transpetro President in Norway (Ålesund, Stavanger, Oslo) – ONS 2010 and Rio&Gas 2010 –

AGREEMENTS BETWEEN COMPANIES AND BUSINESS FEDERATIONS        Petrobras-StatoilHydro NHO-CNI (Confederation of Brazilian Industries) Petrobras-GIEK ( 1B USD) Petrobras/CENPES-Innovation Norway Petrobras/CENPES-SINTEF ONS-Rio Oil&Gas Vale-Hydro  These agreements complements various MoUs and agreements at governmental level.

 Agreements also between research institutes and universities 23

Trade Brazil-Norway 2010

a) overall trade: US$ 1,42 billion b) exports to Norway: US$ 722 million (18% more than in 2009) : Alumina, soya(oil), coffee, minerals, fruit juice c) Norwegian exports to Brazil: US$ 700 million (41% more than 2009): bacalao (30%), LPG, fertilizer, marine equipment SERVICES NOT INCLUDED 24

Breaking new records (trade tripled in 5 years: 2003 to 2008) and recovery in 2010

Trade Flow Brazil-Norway

1500,0 1300,0 1100,0 900,0

1178,7 932,4

700,0 500,0 300,0

546,0

100,0 -100,0 2003 2004

661,3 739,5

2005 2006 2007

1496,9

2008

1107,5

2009

1422,5

2010 25

Norway has been the main destination for Brazilian exports to the Nordic Countries (2007-2010) 1000 900 800 700 600 500 400 300 200 100 0 Norway Sweden Finland Denmark 2007 2008 2009 2010 26

Emerging energy giant

 Brazil is a new frontier for oil exploration and the shipping industry. Petrobras will invest abt. 35B USD annually 2009 – 2013., total 224B USD.

Present production 1,8 M , 2013 2,3 M, 2018 3,2 M bpd  Increasing trade of commodities, oil, gas and biofuels  Brazil a key market for Norwegian oil, gas, shipping businesses and off shore services 27

Opportunities for bilateral cooperation

- Pre-salt and related maritime activities - Training of maritime crew (CIAGA) - Technicians in the supply industry - Specialization of Oil Engineers (Petrobras - Human Resources Programme) - Universities and Research Institutions 28

IV – Opportunities in the maritime sector

Brazil has 34 public sea ports, 3 public river ports, and 42 private. 30

Ports and shipping

1)Brazil's ports are in need of US$23 bn worth of investment to upgrade capacity and meet significant long term growth forecast for the sector 2) Total traffic carried by Brazilian shipping will rise by an average of 8.1% per annum from 2010 to 2014, compared to 7.7% registered in the preceding five years.

TRANSPETRO

59 Million tons shipped by sea 670 Million m3 of crude, oil products and ethanol PETROBRAS TRANSPORTATION AND LOGISTICS ENTERPRISE ACTIVITIES: TRANSPORTATION AND STORAGE OF CRUDE, OIL PRODUCTS, NATURAL GAS AND BIOFUELS 53 vessels 2.9 Million DWT 47 Terminals 10.3 Million m³ 7,100 km Oil Pipelines 4,400 Km Gas Pipelines

THE BRAZILIAN SHIPBUILDING PROMEF ORDERS PLACED • EAS (PE): - 10 Suezmax tankers (160,000 Deadweight Tons – DWT) - 5 Aframax tankers (110,000 DWT) - 4 Suezmax DP shuttle tankers – DPST - (160,000 DWT) 3 Aframax Suezmax DP shuttle tankers – DPST - (110,000 DWT) • EISA (RJ) – 4 Panamax tankers (73,000 DWT) • Mauá (RJ) – 4 Product tankers (48,000 DWT) • Superpesa (RJ) – 3 bunker tankers • Promar (PE) – 8 LPG carriers TOTAL: US$ 4.5 BILLION WILL BE DELIVERED UNTIL JUNE, 2015

ATLÂNTICO SUL SHIPYARD A CASE STUDY EXPLORING THE SUCCESS OF PROMEF

LOCATION:

Pernambuco State Brazil Northeast

INVESTMENT

: US$ 610 million

AREA

: 1,620.000 m2 This will be the largest shipyard in the Southern Hemisphere

PRODUCTION CAPACITY

: Steel processing: 160.000 ton 34

A Challenge: Building competence and capacity in the maritime and offshore sectors

- Training of maritime crew (CIAGA), DLW - Technical management in the supply industry - Specialization of Oil Engineers (Petrobras Human Resources Programme) PETROBRAS alone estimates a gap of 207 000 qualified personnel to complete investment plan 2009-2018 35

GOVERNMENT GUIDELINES

• All

opportunities

must be used to foster national

development

and ensure the

well being

of Brazilians.

• Oil must be deployed as a tool for

generating jobs and incomes

Consequently – building local competence and creating new jobs are prioritoies 36