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
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World largest countries (Km2)
1. Russia………………17,075,200
2. Canada………………9,984,670
3. United States………. 9,826,630
4. China…………………9,596,960
5. Brazil………………….8,511,960
Most populated countries
1China …………...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
.
Rank
1
2
3
4
5
6
7
8
Country ranking GDP (nominal)
Source: IMF (2010)
US$ M
Country
United States
14,624,184
China
5,745,133
Japan
5,390,897
Germany
3,305,898
France
2,555,439
United Kingdom
2,258,565
Italy
2,036,687
Brazil
2,023,528
7
8
9
10
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Brazil has the conditions to successfully
see a long term growth cycle and to
become one of the most dynamic world
economies
12
13
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
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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
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Part II
Brazil and Norway:
Strengthening Relations
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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 19
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)
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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
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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
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– Ports RJ, SP & ES to Stavanger 2010- Greater Stavanger/BNCC
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
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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
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Breaking new records (trade tripled in 5 years:
2003 to 2008) and recovery in 2010
Trade Flow Brazil-Norway
1500,0
1496,9
1422,5
1300,0
USD Million
1100,0
1178,7
900,0
932,4
700,0
500,0
1107,5
739,5
661,3
546,0
300,0
100,0
-100,0
2003
2004
2005
2006
2007
2008
2009
2010
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Norway has been the main destination for Brazilian
exports to the Nordic Countries (2007-2010)
1000
900
US $ Million
800
700
2007
600
2008
500
2009
400
2010
300
200
100
0
Norway
Sweden
Finland
Denmark
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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
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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
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IV – Opportunities in the
maritime sector
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Brazil has 34 public sea ports, 3
public river ports, and 42 private.
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Ports and shipping
1)Brazil's ports are in need of US$23 bn
worth of investment to upgrade capacity
and meet significant long term growth
forecast for the sector
2) Total traffic carried by Brazilian shipping
will rise by an average of 8.1% per annum
from 2010 to 2014, compared to 7.7%
registered in the preceding five years.
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TRANSPETRO
PETROBRAS TRANSPORTATION AND LOGISTICS ENTERPRISE
59 Million tons shipped by
ACTIVITIES: TRANSPORTATION AND STORAGE OF CRUDE,
sea
OIL PRODUCTS, NATURAL GAS AND BIOFUELS
670 Million m3 of crude, oil
products and ethanol
53 vessels
2.9 Million DWT
47 Terminals
10.3 Million m³
7,100 km
Oil Pipelines
4,400 Km
Gas Pipelines
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THE BRAZILIAN SHIPBUILDING PROMEF
ORDERS PLACED
• EAS (PE):
- 10 Suezmax tankers (160,000 Deadweight Tons – DWT)
- 5 Aframax tankers (110,000 DWT)
- 4 Suezmax DP shuttle tankers – DPST - (160,000 DWT)
-3 Aframax Suezmax DP shuttle tankers – DPST - (110,000 DWT)
• EISA (RJ) – 4 Panamax tankers (73,000 DWT)
• Mauá (RJ) – 4 Product tankers (48,000 DWT)
• Superpesa (RJ) – 3 bunker tankers
• Promar (PE) – 8 LPG carriers
TOTAL: US$ 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
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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
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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
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Thank you !
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