100 days Business Plan

General Assumptions (company identity confidential)

This is a supposed Business Plan and the confidentiality of
the executive search didn’t allow to gather information, see
the overview of the company, the description of its products
and services, its management bios, the nature and use of its
technology, how it differentiates from the market, etc.
Considering a corporation which expertise and technological
edge focused on oil & gas industry, we intend to analyze the
Brazilian market and opportunities in Oil & Gas industry.
 To analyze Oil & Gas Brazilian industry, some information is
provided on slides 3 to 17, in order to explain possible
business assessments, that may occur depending on the
corporation expertise.
COMMENTS
 Some comments are attached on these slides.
 General Assumptions (cont’.)

Important questions should be answered, some specific for

Brazilian market:
 How the corporation stands in the market;
 Which are the opportunities within its current contracts, the
possible claims and contracts revisions;
 Which should be new business opportunities (for example are
there opportunities on technological cooperation and R&D?);
 How to improve relationship with Petrobras generally and with
CENPES R&D Center in order to generate future services and
contracts.
 How to better be positioned on Petrobras new investments and
locations.

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Services and Equipments corporations have therefore
an increasing consistent market and business
opportunities on E&P onshore and offshore (which
represents more than 85% of Brazilian Oil & Gas
production and 60% of Petrobras investments)

New Investment Plan (2006-2010) has expected investments

of US$56.4 Billion, yearly average of US$11.3 Billion.

Investment Breakdown (including international investments):

E&P US$ 34.1 Billion (60%)

Downstream US$ 11.4 Billion (20%)
Gas & Energy US$ 06.7 Billion (12%)
Petrochemical US$ 02.1 Billion (04%)
Corporate US$ 01.1 Billion (02%)
Retail System US$ 01.0 Billion (02%)

Source: Petrobras Business Plan 2006-2010 (Petrobras 2015)

Finance Director presentation, AMCHAM, September 2005

3
Source: Petrobras E&P “Domestic E&P – Challenges and Strategy”, Brazil
Energy and Power International Conference, Houston, November 2005
4
Downstream investments: US$11.4 Billion on upgrades, fuel
quality improvement on existed refineries and a 200,000 bpd
new refinery (Petrobras/PDVSA Joint venture).

Source: Ministry of Mines and Energy

5
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 New Players on E&P market: Auction rounds attracted new
investors. Some companies will be future customers on oil &
gas services (in the near future, Devon, Encana, Repsol,
Shell).

7
 Offshore market: Petrobras is leader in Subsea Trees
installation and operation. Centralized operations on Campos
Basin and nearby Espirito Santo and Santos Basins are
business advantage. Other companies has world widespread
operations.

8
Source: Petrobras E&P “Domestic E&P – Challenges and Strategy”,
Brazil Energy and Power International Conference, Houston,
November 2005

9
Offshore and onshore market: New O&G companies, new
business opportunities

Source: ANP “The role of ANP in an ever more competitive market”, 10

Brazil Energy and Power International Conference, Houston,
Offshore market: Where the corporation have contracts on
these Production Systems? And where to go?

Source: Petrobras E&P “Domestic E&P – Challenges and Strategy”, Brazil

Energy and Power International Conference, Houston, November 2005

11
 Production Systems Starting-up

Source: Petrobras E&P “Domestic E&P – Challenges and Strategy”,

Brazil Energy and Power International Conference, Houston, November
2005
12
Offshore market: Future Production Systems – the market to
hunt and improve business opportunities

Source: Petrobras E&P “Domestic E&P – Challenges and Strategy”, Brazil

Energy and Power International Conference, Houston, November 2005 13
Offshore market: Long term projects and future frontiers

Production Systems – Future

Frontiers

Source: Petrobras E&P “Domestic E&P – Challenges and

Strategy”, Brazil Energy and Power International Conference,
Houston, November 2005
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Is there any technological edge to offer that will allow
corporation to be part of E&P Strategy?

Petrobras E&P Strategy

Increase production and reserves
Strenghtehn expertise in deep and ultra-deep waters;
Perform on-shore and in shallow water fields focusing on
profitable opportunities;
Implement practices and new technologies in areas with
high
exploitation degree in order to optimize recovery factor;
Develop exploratory efforts in new frontiers in order to
assure a
sustainable reserve / production ratio.
Perform with operational excellence and social and
environmental responsibility
Source: Petrobras E&P “Domestic E&P – Challenges and Strategy”
Brazil Energy and Power International Conference, Houston, November 2005

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Wishful Thinking – Early Production Units and Extended
Well Testing & Phased Development could be
opportunities to cooperate with Petrobras?

Source: Petrobras E&P “Domestic E&P – Challenges and Strategy”, Brazil Energy
and Power International Conference, Houston, November 2005
16
 Cooperation Programs – How to reach them

Source: Petrobras E&P “Domestic E&P – Challenges and Strategy”, Brazil Energy
and Power International Conference, Houston, November 2005
17
How to manage and improve the corporation
business in Brazil
Considering the market conditions (previous slides from ANP and
Petrobras), the 100 first days as a Sales/Business Development
Manager in a Oil & Gas Services and Equipment corporation should be
based on the following guidelines:

Understanding the corporation (first 20 days)

Learning about the corporate culture and traditions: their ethics, values and the
relationship with the stakeholders.
How the organization is structured.
Understanding IT, business and communicating systems.
Understanding financial and budget procedures.
How it reaches its market position and customers.
Learning about the core business and international activities strategy.
What are the milestones.
Learning human resources values.
Core competencies and what differentiate the corporation on the market.
Announcing the new human resource within the corporation and market, visiting
business units and customers.
Integrating to the team work and daily business activities and routines.
Integrating the communication and corporation systems according to general
procedures of the corporation.
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How to establish and improve general ideas on
actual budget, strategic and business plan

Hands on business (next 60 days)

Corporation market conditions in Brazil (Benchmark and Market

share).
Acknowledgment of the core business, strengthness and weakness,
team expertise and profile, general resources, planning and budged
for the country, general strategy.
General operation and risk management, current contracts, general
claims or revising contracts, extensions on current contracts, new bids.
Some questions about the core competencies of the corporation: Are
there opportunities in other countries that could be practiced in Brazil?
Are there opportunities to increase relationship in Petrobras business
overseas which could improve business opportunities for the
corporation?

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Starting the job
Integrating the team work (next 10 days)

Defining milestones, personal, team, regional and corporation,

according to provided status and general corporation procedures.
Attending the established business and strategic program.
Team work organization and interaction with corporation staff in order
to organize and be introduced to previous and current business.
Organize timesheet to improve activities and relationship within the
corporation.
Troubleshooting and urgent management on current business.
How to improve relationship with the market and better understanding
the Petrobras structure (from Headquarter to operation units, key
persons, where are the decision making).
Opportunities to grow with technological edges and cooperation
(Research Centers, Official Financing Agencies, Technological
Institutes and Universities).
Possible joint ventures and acquisitions within Brazilian Market.
Strategic presence on Chambers of Commerce (USA, UK, Canada,
France), Industry Associations, Trade Fairs and Conferences.
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Answering the questions
 How the corporation stands in the market?
It is quite important to pinpoint corporation position in the market
and analyze all opportunities that could arise: from new contracts
that could be generated in the current portfolio (value chain) to
business opportunities like joint ventures and M&A. Another
question that need to be answered is how the corporation stands
on the competition (sometimes there are cooperation between
companies, exchange of contracts, subcontracts, etc.)
 Which are the opportunities within its current contracts, the possible claims and
contracts revisions:

Sometimes Petrobras contracts are tough and there are

opportunities to increase contract value with extensions, claims,
misunderstandings clauses that might generate some surplus and
margins on current contracts.

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 Answering the questions, cont’.
 Which should be new business opportunities (for example are there opportunities to
technological cooperation on R&D?)

Some Financing Agency promote new developments in Brazil.

Several projects are under development and some of them could
be business opportunities depending on corporation core business.
It should be worthwhile to have a look on these projects.
 How to improve relationship with Petrobras generally and with R&D CENPES in
order to generate future services and contracts?

Research and Development Center (Petrobras CENPES) have

several programs under development extending technological
edges and frontiers . Corporation should have a look on
cooperation opportunities. Being in origin of new projects might
benefit future contracts and specifications (bids with similar
corporation spec’s)
 How to better be positioned on Petrobras new investments and locations?
It is quite important to improve contact on new locations such
Vitoria and Santos, where several new E&P investments and
decisions will be located.
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Acknowledgments

Information about the hiring Information about business

company are strictly plan were researched
confidential. through the following web
sites:

The market and data www.brs-inc.com/business_plan.asp

information is a selection of www.bplans.com/sp/businessplans.cfm
www.sba.gov/starting_business/planning
public presentations and the
comments are based on
general ideas from the
author and do not
necessarily are consistent.
Joaquim P. Leão, Rio de Janeiro, January 12,
2006
joaquimpleao@gmail.com
55-21-9961-1960

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