1 Brazil: A market for Norwegian competence Terje Staalstrøm President BNCC

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

World largest countries (Km2) 1. Russia………………17,075,200ussia 2. Canada………………9,984,670Canada 3. United States………. 9,826,630nited States 4. China…………………9,596,960China 5. Brazil………………….8,511,960Brazil

Most populated countries 1 China …………...1,335,700,000 China 2 India …………....1,176,748,000India 3 United States ……308,632,000United States 4 Indonesia ………..231,369,500Indonesia 5 Brazil ………….…190,700,000Brazil

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

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

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Brazil Consolidating Democracy 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 ……

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

17 Summing up: Brazil in 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

18 Part II Brazil and Norway: Strengthening Relations

19 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

20 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)

21 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

22 High level business contacts – 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 – Ports RJ, SP & ES to Stavanger Greater Stavanger/BNCC

23 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

24 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

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

26 Norway has been the main destination for Brazilian exports to the Nordic Countries ( )

27 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, ,3 M, ,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

28 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

29 IV – Opportunities in the maritime sector

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

31 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.

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

34 LOCATION: Pernambuco State Brazil Northeast INVESTMENT: US$ 610 million AREA: 1, m2 This will be the largest shipyard in the Southern Hemisphere PRODUCTION CAPACITY: Steel processing: ton ATLÂNTICO SUL SHIPYARD A CASE STUDY EXPLORING THE SUCCESS OF PROMEF

35 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 qualified personnel to complete investment plan

36 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

37 Thank you !