Project Execution at Energy FieldProject Execution at Energy Field
in Brazilin Brazil
=Business Opportunities in Oil and Gas Sector in Brazil==Business Opportunities in Oil and Gas Sector in Brazil=
July 16, 2008July 16, 2008
L TOYO ENGINEERING CORPORATION ©2007- 2 -
20080716_JOI
ToyoToyo’’s Business Activitiess Business Activities
�� Project Management Contractor (PMC) ServiceProject Management Contractor (PMC) Service
�� R&D Engineering R&D Engineering
�� EPC LumpEPC Lump--Sum Turnkey Service Sum Turnkey Service
�� EPsCmEPsCm ServiceService
�� Licensing Service Licensing Service
�� Project Financing ServiceProject Financing Service
Feasibility Study Feasibility Study
Service Service
Conceptual Planning & Conceptual Planning &
Estimating Service Estimating Service
Front Eng Engineering DesignFront Eng Engineering Design
(FEED) Service (FEED) Service
Detail Engineering Detail Engineering
Service Service
Procurement Service Procurement Service
Construction ManagementConstruction Management
Service Service
Commissioning Assistance Commissioning Assistance
Service Service
Training ServiceTraining Service
Technical Assistance Service Technical Assistance Service
for Plant Operationfor Plant OperationO&M Service,O&M Service,
Plant Diagnosis Plant Diagnosis
-- RevampRevamp
-- DebottleneckingDebottlenecking
-- Scrap & BuiltScrap & Built
ToyoToyo’’s Project Experience in Brazil s Project Experience in Brazil
Toyo has made twenty one (21) contracts with Toyo has made twenty one (21) contracts with
Petrobras since 1996. Petrobras since 1996.
Port Alegre
‘97 Gas Processing
Rio de Janeiro
‘96 Refinery FCC Unit
‘81 Petrochemical‘73 Urea‘65 Urea
CamaçariCamaçariSalvador
’07 Gas Processing‘99 Gas Separation and Transfer‘98 Gas Compressor Station
CabiúnasCabiúnas
CanoasCanoas
‘01 Refinery Modernization‘00 Waste Water Treatment &
Drainage Systems‘99 Refinery Modernization
Duque de CaxiasDuque de Caxias
Campos BasinCampos Basin
‘00 Off Shore Project
Manaus
São Paulo
Brasilia
‘02 Natural Gas Pipeline
UrucuUrucu
TOYO’s Experience in BRAZILTOYOTOYO’’ss Experience in BRAZILExperience in BRAZIL
Fortaleza
GuamaréRecife
Gua rarema
‘03 Crude Oil Pipeline
Barra do FuradoCampinas - Rio de JaneiroCampinas - Rio de Janeiro
Barra do FuradoBarra do Furado
‘03 Natural Gas Pipeline
’05 Urea Granulation‘97 Urea (Expansion)‘76 Urea
LaranjeirasLaranjeiras
MataripeMataripe
Fortaleza - Guamaré & RecifeFortaleza - Guamaré & Recife
Pilar
Catu
Aratu
Atalaia
‘04 Natural Gas Pipeline
Pilar – Carmópolis - Catu, Atalaia - Itaporanga & Aratu - CamaçariPilar – Carmópolis - Catu, Atalaia - Itaporanga & Aratu - Camaçari
São José dos CamposSão José dos Campos
‘06 Refinery Modernization (EPC)‘06 Refinery Modernization (FEED Upgrading)
’07 Gas Processing‘02 Delayed Coker
‘02 Gas Processing‘00 Off Site Utility
* On-going projects are indicated in red color.
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ToyoToyo’’s Major Projects in Brazil (Since 1996) s Major Projects in Brazil (Since 1996)
Techint
Techint
Setal
Part of engineering
works were
subcontracted to JPE
and KTY
Setal
Camargo Corrêa
Camargo Corrêa
Andrade Gutierrz
Queiroz Garvao
OAS
Setal
Setal
Brazilian Partner
EPC
EPC
EPC
EP
EP
EPC
EPC
EPC
EPC
Service
○RFCC BaihaRLAM RFCC Project1996
○Gas ProcessingAmazonasUrucu Gas Processing1997
○Gas Processing RioCabiunas & REDUC Gas
Processing
1999
○RFCC, Delayed Coker,
Diesel HDT
Utilities Off-site
Rio Grande
do SulREFAP Refinery Modernization 2001
Delayed Coker RioREDUC Delayed Coker 2002
○Gas Pipeline 455kmSao Paulo -
RioMalha Sudeste Gas Pipeline2003
○Gas Pipeline 500kmBahia
,Sergipe,Al
agoas
Malha Nordeste Gas PIpeline2004
○Delayed Coker
Coke Naphtha HDT
Sao
Paulo
REVAP Refinery
Modernization
2006
Gas ProcessingRio Cabiunas & REDUC Gas
Processing Project
2007
JBIC
Finance
Type of PlantLocation Project Name Contract
Year
-6-20080716_JOI L TOYO ENGINEERING CORPORATION ©2008
�� Project NameProject Name :: REVAP Refinery Modernization ProjectREVAP Refinery Modernization Project
�� LocationLocation :: São JosSão Joséé dos Campos, Sao Paulo States ,Brazildos Campos, Sao Paulo States ,Brazil
�� Scope of ServicesScope of Services :: EPC + Commissioning AssistanceEPC + Commissioning Assistance
�� Scope of PlantScope of Plant :: ProcessProcess CapacityCapacity LicensorLicensor
Delayed CokerDelayed Coker 31,500 BPSD31,500 BPSD PetrobrasPetrobras
Coker Naphtha HDT Coker Naphtha HDT 18,900 BPSD18,900 BPSD UOPUOP
Sulfur Recovery UnitSulfur Recovery Unit 93.5 MTPD x 2 93.5 MTPD x 2 CBI TPACBI TPA
Tail Gas Treatment Tail Gas Treatment 187 MTPD187 MTPD CBI TPACBI TPA
along with related facilities such as DEA Treating Unit etc.along with related facilities such as DEA Treating Unit etc.
�� StatusStatus :: Site Construction Work in ProgressSite Construction Work in Progress
�� Brazilian PartnersBrazilian Partners : OAS, Setal : OAS, Setal
REVAP Refinery Modernization ProjectREVAP Refinery Modernization Project
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�� Project NameProject Name :: CabiCabiúúnasnas Gas Processing Expansion ProjectGas Processing Expansion Project
�� Location Location :: CabiCabiúúnas & Duque de Caxias, Rio de Janeiro State, Brazil nas & Duque de Caxias, Rio de Janeiro State, Brazil
�� Scope of ServicesScope of Services :: EPC + Commissioning AssistanceEPC + Commissioning Assistance
�� Scope of PlantScope of Plant :: ProcessProcess CapacityCapacity
Gas Processing Gas Processing 188 MMSCFD 188 MMSCFD
�� StatusStatus :: Site Construction Work in Progress Site Construction Work in Progress
�� Brazilian PartnerBrazilian Partner :: SetalSetal
Photo of Cabiunas Project Phase 1(completed in year 2003)
CabiunasCabiunas Gas Processing ProjectGas Processing Project
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Rio de Janeiro
�� Project NameProject Name :: Malha Gas Pipeline Project Malha Gas Pipeline Project
�� LocationLocation :: SSão Paulo, Rio de Janeiro, Bahia, Sergipe, Alagoasão Paulo, Rio de Janeiro, Bahia, Sergipe, Alagoas
�� Scope of ServicesScope of Services :: EPC EPC
�� Scope of PlantScope of Plant :: Natural Gas Pipeline : Total Natural Gas Pipeline : Total –– 1,000 km 1,000 km
Metering StationsMetering Stations
�� StatusStatus : Southeast :Completed Northeast: Commissioning : Southeast :Completed Northeast: Commissioning
�� Brazilian PartnersBrazilian Partners :: Camargo Corrêa, Andrade Gutierrez, Queiroz GarvãoCamargo Corrêa, Andrade Gutierrez, Queiroz Garvão
455 km455 km2828””CampinasCampinas--RioRioSoutheast Southeast RegionRegion
27 km27 km1414””AratuAratu--Camacari Camacari
29 km 29 km 1414””AtalaiaAtalaia--Itaporanga Itaporanga
176 km 176 km 2626””CarmopolisCarmopolis--Pilar Pilar
12 km12 km
265 km 265 km
1212””
2626””
TermopernambucoTermopernambuco
CatuCatu--Carmopolis Carmopolis
Northeast Northeast Region Region
LengthLengthDiameterDiameterPipeline RoutePipeline RouteProjectProject
Malha Gas Pipeline Projects (1/2)Malha Gas Pipeline Projects (1/2)
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Malha Gas Pipeline Projects Malha Gas Pipeline Projects (2/2)(2/2)
Characteristic of Projects in Brazil Characteristic of Projects in Brazil
Contribution to PetrobrasContribution to Petrobras’’ Future Projects in Future Projects in
Collaboration with Brazilian firmsCollaboration with Brazilian firms
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Features of Petrobras Project (1/2)Features of Petrobras Project (1/2)
To respect Petrobras’ basic
design and specification
To maximize local contents
To comply with approved
vendor lists
To follow Petrobras’ approval
procedure
To be familiar with Petrobras
specification to make necessary
modifications in design
To have ample knowledge of
capability of Brazilian
manufacturers
To consider time and various steps
to obtain approvals to control work
schedule
Requirements Action
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Features of Petrobras Project (2/2)Features of Petrobras Project (2/2)
Action
To follow Petrobras control
system such as SIGEM,
Controltubo and SGC etc.
To have enough knowledge
about Petrobras control system
To follow strict HSE regulation
and guideline
To consider time and budget for
strict HSE at construction site
Requirements
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Barrier and Supportive factors for Japanese Contractors Barrier and Supportive factors for Japanese Contractors
to work in Brazilto work in Brazil
Control various factors
to keep project
schedule
Barrier
Portuguese
Supportive factors in Brazil
Historical Contribution of
Japanese Immigrants to
Brazilian Society
Importance of Human
Relationship in Business
Availability of employee
Speaking Japanese
Developed Industry and
Infrastructure
Finance from Japan (JBIC)
etc.etc.
Complicated Tax System
VISA
Labor Relations
Labor Contents
Security
Geographical Location
Local Regulations (NR-13,
INMETRO, NR-10 etc.)
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Brazilian Tax System in EPC Business Brazilian Tax System in EPC Business
EPC cost increase of around 30% due to
various taxes.
EPC cost increase of around 30% due to
various taxes.
GoodsGoods
ProfitProfit
ServiceService
COFINS(社会負担金)社会負担金)社会負担金)社会負担金)COFINS(社会負担金)社会負担金)社会負担金)社会負担金)
PIS(社会統合基金)社会統合基金)社会統合基金)社会統合基金)PIS(社会統合基金)社会統合基金)社会統合基金)社会統合基金)
II(輸入関税)II(輸入関税)
IPI(工業税)IPI(工業税)
ICMS(商品流通税)商品流通税)商品流通税)商品流通税)ICMS(商品流通税)商品流通税)商品流通税)商品流通税)
ISS(サービス税)サービス税)サービス税)サービス税)ISS(サービス税)サービス税)サービス税)サービス税)
CSLL(社会負担金)社会負担金)社会負担金)社会負担金)CSLL(社会負担金)社会負担金)社会負担金)社会負担金)
IRRF(法人所得税)(法人所得税)(法人所得税)(法人所得税)IRRF(法人所得税)(法人所得税)(法人所得税)(法人所得税)
-15-20080716_JOI L TOYO ENGINEERING CORPORATION ©2008
Japanese ContractorsJapanese Contractors’’ ReinforcementReinforcement
Control of various factors to
keep project schedule
Capability to coordinate
related divisions and
companies
Creativity to make suggestion
to improve design and
specification
Improvable Points
Reinforcement
Shortage of Engineering
Manpower resources
Technology Oriented
(Front-end Loading)
Nature of Japanese Contractors
Worldwide Engineering
Resources
Persistence for Schedule
Keeping
Strong Team Work and
Coordination
Creative ideas to improve
design and specifications
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Brazilian Engineering & Construction Companies Toyo Brazilian Engineering & Construction Companies Toyo
has worked with for Project and Proposalhas worked with for Project and Proposal
Construction Oriented Companies
-Construtora Andrade Gutierrez
-Construçes e Comércio Camargo Corrêa
-Construtora Norberto Odebrecht
-Construtura OAS
-Queiroz Galvão
-GDK Engenharia
-UTC Engenharia
-ETESCO
-CONDUTO
-TECHINT Brazil
-Azevedo & Travassos
Engineering Oriented Companies
-Setal
-UTC Engenharia
-Promon Engenharia
-KTY Engenharia
-JPE
-JP Nor
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Brazilian Manufacturers Toyo has worked with for Brazilian Manufacturers Toyo has worked with for
projects in Brazil projects in Brazil
-Confab Industrial
-CBC Indústriais Pesadas
-Bardella
-Empresa Brasileiro de Solda Eletorica (EBSE)
-DELP
-FMC Energy Systems
-IESA Projectos,Equip, e Mont.
-Jaraguá Equipamentos Industriais
-MYCOM Chemical Process do Brasil
-Pirelli Cabos
-Rockewell Autometion
-Unicontrol
-Usiminas Mechanica
-Dedini
-Yokogawa do Brasil
-Sigmatronic Technologia Aplicada
-Fluxo
-Simens Brasil
-Alstom Brasil
-Prestserve
-Flowserve
-GEA do Brasil
-ITT Flght Brasil
-KSB Bombas Hidraulicas
-NG Metalurgica
-Sulzer Brasil
-Vibropac
-Medabil
-Engemetal
-Orteng
-WEG
-Metso
-Emerson Process Management
-Institute de Pesquisas Technologicas
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Contribution to Contribution to PetrobrasPetrobras’’ Future Project Future Project
Contribution to
Petrobras’ Future
Projects
Experience and Familiarity with
Petrobras’ Projects
Experience and Familiarity to work with
Brazilian Engineering & Construction
Companies
Database of Brazilian
Manufacturers
Financial Support
from ECA and Banks
Investment and
Project Development
by Japanese Trading
Companies
Advanced Technology and
Project Execution Capability as
International Contractor