Full Energy International 2017

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Editorial STAFF

Publisher: Edmilson Jr. Caparelli Administrative Director: Lúcia Rodrigues Executive Director: Marcelo Caparelli Marketing Director: Jailson Rainer Commercial Director: Giovana Teixeira Art Director: Erica Almeida Alves Grupo Mídia’s Editor: Carla de Paula Pinto Full Energy´s Editor: Clivonei Roberto Writers: Guilherme Batimarchi Collaborator: Maísa Oliveira Trainees: Juliana Ijanc’ and Kahel Ferreira Art Producer: Valéria Vilas Bôas Translator: Flavia Farha

Subscriptions: assinatura@grupomidia.com Reader Services: atendimento@grupomidia.com Custom Projects: projetoseditoriais@grupomidia.com Contact: Head Office: 256, Aureliano Garcia de Oliveira St. Phone: +55 16 3629-3010 Branch Office: 2.202, Paulista Ave., – 6º, 10º e 16º Floor Phone: +55 11 3014-2499 | contato@grupomidia.com redacao@grupomidia.com | comercial@grupomidia.com The contents of the articles are a responsibility of the authors and do not necessarily reflect the opinion of Grupo Mídia. The materials and articles reproduction shall be allowed only if previously authorized in writing

by Grupo Mídia, with the source credit.

Warning: people not mentioned in our staff are not allowed to make articles or reports, sell ads or even to decide on Grupo Mídia behavior.

Brazil: vocation for clean and renewable energy

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nergy is an inseparable part of mankind daily life. Electricity became the main source of light, heat, and power used in the modern world.

On the other hand, the liquid fuels perform an important role, especially by its use in the transportation sector. It is not a coincidence that energy is a determinant factor for the development of a society and strategic factor for a nation. For this reason, Brazil is privileged in this world’s scenery, because of it’s great diversity of energetic sources.

In fossil fuels, the country is a highlighted producer of oil in the world and registers a growth in natural gas production. But what is different about Brazil is our potential in clean and renewable energy, that corresponds to more than 43% of the energetic matrix in the country. Therefore, one of the cleanest ones in the world.

The hydroelectric source is the main electricity generator in the country, but other clean and renewable alternatives move forward, like wind, solar and biomass, that tunes Brazil with the world challenges for the reduction in pollutant gasses emission.

In this special edition of Full Energy International magazine, meet the energetic potential of Brazil in the different sources and how much the country is an interesting player for the Energy world investors.

A unique publication with this profile, which will circulate in the great international events of energetic sector.

Edmilson Jr. Caparelli CEO | Publisher of Grupo Mídia

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Summary 10 years of Grupo MĂ­dia: a history full of energy

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With more than 10 brands in its portfolio, Grupo MĂ­dia reaches 10 years expanding its acting in publications and business events

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The energy that comes from the roofs

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The Brazil of Winds

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Alliance for Mexico

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Off and Running: Sugar cane harvest has begun

Photovoltaic Solar Energy Sector shows 100% growth in market participation; It is estimated that until the end of 2017 Brazil will have around 20 thousand installed units among residences and commerce

With 430 production parks and 10.74GW of installed capacity, wind power reaches 7.1% of participation in Brazilian energetic matrix

Siemens and Mexican government close a deal to boost oil and gas production

The foresee sugar cane milling in Brazilian Center-South region must reach 612 million tons

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A giant on the borders of Madeira River

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Petrobras under new command

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Jirau Hydroelectric Power Plant (UHE) will be responsible for 3.7% of all electric power produced in Brazil, being the third biggest generator in the country and one of the twenty biggest Hydrelectric in the world

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In just a few years, oil extraction must overcome 3.4 million barrels per day, and the company will be one of the greatest in the world industry again

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Highlights

Biomass Power In 2016, bioelectricity became to be the second most important generation source in OIEE - Internal Offer of Electric Power in Brazil, overcoming the natural gas, something that hasn’t happened since 2011. The information is from the Monthly Power Bulletin (December/2016) reported by Ministry of Mines and Energy (MME). In 2016, biomass generated 54,1TWh, including the auto production, representing 8,8% of all OIEE, while natural gas represented 8,1% at the same period.

Comparing to 2015, bioelectricity raised its production by almost 10%. This generation includes different fuels, mainly the sugar cane biomass derivatives, forest residues, and the black liquor (present in paper and cellulose industry).

The Hydro Generating Centrals (CGHs) During the 1st National Hydro Generation Centrals Workshop, promoted by PCHs and CGHs Brazilian Association (ABRAPCH), Paulo Arbex, economist, and entrepeuner, celebrates the great interest of the professionals from electric sector. “The initial estimative was to be a workshop for around 150 people, but the demand surprised us. There was 330 enrolled and a waiting list”, says Arbex, ABRAPCH’s president. Because of the high demand, the Association already analyzes the possibility of having a second event. The National CGHs Workshop was created with the objective of empower the entrepreneurs for the challenges they will face in this sector, after all the achievements reached last year: National Congress approved the raising in CGHs generation potential, from 3MW to 5MW (MP 735, Law nº 13/360); Federal government allowed the CGHs participation in the public power auctions. “With these two actions taken, the producer now is capable to sell their power in a long term”, affirms Arbex.

The fostering to renewable power in isolated systems The BNDES – National Bank of Social and Economic Development in Brazil - recently approved especial financing conditions for ventures about renewable electric power generation in isolated systems at Amazonas Energia, that will be auctioned on the Second Stage of the Auction 002/2016 from Agência Nacional de Energia Elétrica (Aneel – National Agency of Electric Power), scheduled for May, 11th 2017.

For the Mines and Energy Minister, Fernando Coelho Filho, this initiative shows the perfect tuning of Federal Government in making the energetic matrix in the country cleaner. “Our Objective is to assist the North Region power demand, but always encouraging methods that are less pollutant and generating less impact too”, said the Minister.

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INSTITUTIONAL

Edmilson Jr Caparelli, Grupo Mídia CEO and publisher

10 years of Grupo Mídia: a history full of energy With more than 10 brands in its portfolio, Grupo Midia reaches 10 years expanding its acting in publications and business events

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ounded exactly 10 years ago in Ribeirão Preto, in the countryside of the São Paulo State, Grupo Mídia (GM) conquered greater emphasis in the Brazilian publishing market, with specialized publications for the Healthcare, Energy, and Well-being segments.

One of the first advances of Grupo Mídia was Fornecedores Municipais (Municipal Suppliers), a publication directed to the Municipal Governments.

The magazine remained in the market for five years and it was with this expertise that GM started gaining new markets, one of which is the healthcare community with the magazine called Guia Hospitalar (Hospital Guide). The publication grew and with it, there came the importance of reformulating the

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magazine that became to be more than a catalogue.

Guia Hospitalar then turned to be Healthcare Brazil, a publication with content about business and hospital management.

But these are not the only changes. With the purpose of talking to everyone in the segment, Healthcare Brazil, since 2010, became Healthcare Management, a publication that involves contents not only for the hospital managers but also healthcare Insurers, industries, companies and other market influencers.

Later, to serve specific segments in Healthcare, it was created the HealthARQ magazine, about architecture and engineering in Healthcare; and Health-IT which brings news about technology in this sector; both are the only ones in Brazil with this specialized content.

Download Zappar app and watch the video about the 10 years of the Grupo Mídia (learn more on page 5)

Energy

Brazil’s 100 Most Influential in Healthcare Why not honor the people that actually make the Healthcare happen in the country? This is how the “100 Mais Influentes na Saúde” (Brazil’s 100 Most Influential in Healthcare) was born; a tribute to the managers, executives, researchers, and businessmen in the sector. The first edition happened in 2013, at Hospitalar Trade Fair, in the Grupo Mídia stand. In the following years, the award was held at the main auditorium in Hospitalar, on the last day.

The “Health Oscars”, as the award became well known, changed its format in 2017. Because of the greatness and importance that it reached, the award is now happening in a gala dinner in São Paulo, offered for the awardees and their guests.

This award was the kick-off for GM actuation in events.

So much that in 2014 the Group carried three events in Health: Forum + HealthARQ Award, Healthcare Business Forum, and also Excelência em Saúde (Excellence in Healthcare), that besides lectures and specific debates, also tribute success cases and personalities in the sector. In 2015, another event became a part of GM agenda: Forum + Health-IT Award. These are just some of the great events promoted by the company.

Once it became consolidated in Health, GM started to invest in other sectors aiming to expand its actuation. Our new business unit is an example: Energy. The flagship is Full Energy magazine, specialized in management in the sector.

The energy unit also invested in events, holding in 2016 the 1st Full Energy Forum and the “Brasil´s 100 Most Influential in Energy” award. The event, in São Paulo, gathered important names like Mark Lira, Cosan Biomassa president; Marcos Meireles, Rio Energy CEO; Rodrigo Lopes Sauaia, ABSOLAR executive president; Alexandre Reis, SEW Eurodrive Brasil director, among others.

Today, other events directed to Energy area are being developed. “GM was bold in including energy sector in its strategic plan. The company created Full Energy magazine, a publication that innovates when it not only takes information and analysis about the segment, what is strategical for the country, but also offers to the readers a content directed to management and business in energy”, highlights the journalist Clivonei Roberto, Full Energy magazine editor.

Another unit in GM is Lifestyle. Nowadays, the main GM vehicle in this unit is Realiza Premium magazine, that went through changes since its acquisition, in 2016. At the end of last year, Realiza was named Realiza Premium. The new proposal is to make it a themed publication, with a specific subject to each edition, always directed to a demanding and premium public.

New projects For this year, GM is investing in new projects. One of them is the return of Municipal Suppliers magazine.

However, the old magazine will be a supplement inside the new magazine Municipal of Brazil, publication directed to the country public management, among other publications, developed inside the customized projects department of GM. There is so much to celebrate in the 10 years of GM achievements. But, as the time never stops, Grupo Midia team is working full steam writing the next chapters of this beautiful history, an upward company in Brazilian editorial market.

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The energy that comes from the roofs Photovoltaic Solar Power Sector shows 100% growth in market participation. It is estimated that until the end of 2017 Brazil has around 20 thousand installed units among residences and commerce 10

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nergy is essential in life. Although, Brazil has failed in some management, production, and distribution aspects.

Since 2001, the country has been facing an energy instability, dealing with moments of forced power cuts and difficulties with the scarcity of rains.

The lack of investments in the sector, allied to the progressive increase of electrical energy consumption by modern society, had caused this energy difficulty in the country. The fact is that Brazil urgently needs to energize itself in an intelligent way, solving problems like the imbalance of country energetic matrix.

According to BEM 2016 (National Energy Balance), released by EPE (Energy Research Company), in Brazil, during the 2015 year, nonrenewable energies showed a participation of 58,8% in OIE (Internal Energy Offer), against 41,2% of renewable energies.

However, in order to unite energy efficiency with low environment impacts, Brazilian Government is been trying more and more to use renewable energies. According to EPE, these energy sources showed in 2015 an increase of 18,8% in its participation compared to the year before. In this context, solar power has highlighted itself, being increasingly explored whether in the generation for the commercial area or in residential systems.

Distributed and centralized There are two segments in photovoltaic solar power in Brazil: centralized solar photovoltaic generation and distributed solar photovoltaic generation. The first one concerns to the operation traditional model of great Electrical Power plants, with a network of transmission and distribution lines.

The second one corresponds to electric power sources connected to the consumers themselves, like power generation at houses roofs.

According to Rodrigo Lopes Sauaia, president executive of Absolar (Photovoltaic Solar Power Brazilian Association), today, the distributed generation segment represents about 7,500 photovoltaic systems of micro and mini generation in the country, totalizing around 57 megawatts in installed FULL ENERGY

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power. Aneel (Electric Energy National Agency) foresees that about 1,2 million consumer units start producing their own power until 2024, totalizing 4,5 gigawatts (GW) of installed power in Brazil.

Regarding the centralized generation segment, it showed in 2015, about 3,300 megawatts in contracted power. For the Absolar President, the difference on the scale in these two markets is very expressive.

Moreover, for the executive, the centralized generation is fundamental for the development of photovoltaic solar source in Brazil. “This source is essential to attract the productive chain and manufacturers. In order to bring and keep these manufacturers in the country and the job positions created by them”.

Solar Power: the potential of 200 “Brazils” From the solar point of view, Brazil is privileged.

A tropical country with excellent radiation level originating in the sun, shows an extremely high technical potential for the photovoltaic solar power production.

According to Sauaia, if Brazil could develop all its capacity in centralized photovoltaic solar power production, it would reach the 28,500 gigawatts potential, which represents more than the potential of all the other renewable and nonrenewable power sources today, that totalize 149 gigawatts. “We could fuel 200 ‘Brazils’ with this technical potential, from the potency point of view”, he says.

In face of all this potential, the Ministry of Mines and Energy created, in 2015, ProGD (Development Program of Distributed Generation of Electric 12

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Energy), that encourages the power generation from solar plates, inside the consumer units, that may be shared with the power distributors systems through a credit system.

Energetic roofs According to Marcel Haratz, director of Comerc Solar, the power obtained through the distributed photovoltaic solar system cannot be commercialized to the local power concessionaire – either the one in a residential address or the one in a commercial establishment. However, these consumers that also became power producers receive credits with the local distributor.

“If you have a house that consumes 500 kwh a month, but produces 200 kwh, at the end of the month will pay just the difference, which in this case represents 300 kwh. Besides it, this credit may be used in up to 60 months, but only in addresses within the reach of the distributor you signed up for”, he explains.

According to the director, a photovoltaic power generation system – for a four bedrooms house – needs an investment of around R$ 25,000,00 using an area of solar panel up to 40m2. But Haratz assures that, no matter how high the investment can be, the return is very positive over the years, once the photovoltaic panels have an operating life of around 25 years and they do not raise ordinary maintenance problems.

“The person must be ready to spend the money in the necessary resources and plan the profitability, calculating the payback. One hint is that the panels generate 80% to 70% of client energetic needs so that the credit system with the distributor works in a satisfactory way”, he advises.

Solar Comerc Index – low voltage (residential and small consumers/ November 2016) STATE

SP RJ RS DF PR AM PA

CITY / DISTRIBUTOR São PauloELETROPAULO Rio de Janeiro LIGHT Porto Alegre CEEE Brasília - CEB Curitiba - COPEL Manaus AMAZONAS Belém - CELPA

ICMS SOLAR ALIQUOT INDEX (Generation x Rate) with ICMS

Cost reduction According to Haratz, in 2016 Brazil presented around 6 thousand solar power generation units installed, between residential and commercial ones. The estimate is that until the end of 2017 this number reaches 20 thousand units, tripling the annual amount. This significant increasing is completely bond to the investment values in photovoltaic solar power. If the perspective of cost reduction with equipment for the next years is confirmed, Haratz believes that the solar panels prices will be reduced by half until 2024.

In the projection of Absolar’s President for 2017, the expectation is a continuing growing of solar power technology in Brazil, since even in years of political and economic turbulence, the sector showed 100% growing.

SOLAR PAYBACK POWER (Years) GENERATION (MWh/Year)

18%

6,70

1359

12,15

29%

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1592

7,96

30%

7,37

1550

7,46

21%

6,88

1707

7,99

29%

5,06

1271

10,86

25%

9,62

1620

6,14

25%

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1658

4,80

The success of distributed generation At the end of January, the Ministry of Mines and Energy showed how much the incentive for power generation by the consumers – known as micro and mini distributed generation – have been well succeeded. According to Aneel data, the country already registered 7,610 connections of distributed generation until January 2017, totalizing an installed power of 73,569 KW. Among the most used renewable energies, the photovoltaic solar source is the one which greater highlight, with 7,528 connections. In terms of installed power, the energy generated by the sun also comes out ahead with 57,606 KW. The great majority of distributed generation connections remain in residences. According to Aneel, 5,997 of the distributed generation connections meet the needs of this consumer class. And commerce is responsible for 1,186 accessions.

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Wind installed in Aracati (CE) 14 FULLPark ENERGY International

The Brazil of Winds With 430 production parks and 10.74GW of installed capacity, wind power reaches 7.1% of participation in Brazilian energetic matrix

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espite the fact that Brazil has installed its first wind energy turbine in 1992 in Fernando de Noronha (State of Pernambuco), the country has highlighted itself in the international scenery, occupying the fourth position in world wind power growth in 2015.

According to Elbia Gannoum, ABEEólica (Brazilian Association of Wind Energy) president executive, within the last six years, the investment made by the companies from the wind power productive chain – 80% already nationalized – was from R$ 48 billion. “If we count from 1998 until today, we already have around R$ 60 billion invested”.

Just so you have an idea, in 2015, this energetic source fueled, every month, a population that is equivalent to all the Southern part of the country, that corresponds to 33 million inhabitants and 11 million residences.

According to a research released by ABEEólica in

December 2016, the participation of this source in the matrix reached 7.1%. According to Elbia, today Brazil has 430 wind parks installed, which represent 10.74 GW of wind capacity – much more of what the nation consumes at this moment.

To the president, the favorable situation of wind industry may be explained by the great quality of Brazilian winds and also for the strong companies investment that in the last five years built a productive national chain to sustain the commitments assumed.

According to Sérgio Augusto Costa, executive director of VILCO Consulting and Engineering, at this moment, there are more than 134 wind power plants being built, with a total potency of 3,101 MW. Besides it, there are around 202 power plants in Brazil that still did not start to be built, that total a potency of 4,720 MW. The estimative is that the country reaches about 18 GW of installed potency in wind power until 2020. “It is estimated that about R$ 60 billion were invested in the sector since the beginning of wind power in Brazil”.

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Public politics Benefits Each MW of Wind power installed generates 15 work positions, reveals Elbia. In 2016, around 30 thousand work positions were generated in this area. For SĂŠrgio Costa, the local economy is foster during the construction and the cities increase their revenue due to gathering increase of ISS (tax over services) in the venture implementation.

Besides it, the director also points out that, when a wind park is constructed, social programs are developed to help local communities that are direct and indirectly affected by the installation impact.

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Between 2004 and 2008, Brasil lived a period compared to a fetal development of wind power. It was when generation technology did not utilize the winds generation potential completely. It was in this period specifically in 2004, that PROINFA (Alternative Sources Incentive Program) was launched, and it was initially contemplating 1.100 GW of wind power hired.

In a practical way, it was installed 964 MW. The objective was to speed up the investments in renewable energies, as wind power, PCHs (Small Hydro Powers) and biomass, through 20 years contracts, where Petrobras is responsible for trading the generated power by the hired enterprises

by PROINFA. Until 2015, the installed potency of wind power was about 8.4 GW. Because of all the demands for the financing through FINAME (Equipment and Machines Financing Program), and BNDES (National Bank of Social and Economic Development in Brazil), there was the development here in

Brazil of the productive chain of equipment and machines used in wind market, that is the equipment production nationalization, generating direct and indirect jobs.

This way, wind energy had consolidated as being the second most hired source in energy auctions and more competitive, just behind the Large Hydroelectric Centrals.

The Energy sector has intensively developed itself because of taxes relief, with exemption of PIS/PASEP and COFINS, through the Regime of Infrastructure Projects Incentive (REIDI), and ICMS (Tax on Service and Goods Circulation), through the CONFAZ nº101 agreement, from 1997. “This means that there was a tax incentive for the productive chain creation that was a very successful industrial politic”, explains Elbia.

Perspective Today, wind energy is the third renewable source most used in Brazilian Electrical Matrix. ABEEolica executive president believes that, soon, this source will reach the second position.

“In energetic matters, the wind energy is already responsible for a high supply of the national load reaching 10% in daily averages, and in the Northeast of the country, this number must reach 40%” In 2015 this sector got investments of US$ 4,93 billion.

According to the “Annual Bulletin of Wind Generation 2015”, released by ABEEolica, in that year, the sector was responsible for the generation of 21,37 TWh – value 74,8% bigger than the generation in 2014.

There was also a record in power plant installations, contemplating, for the first time, more than a hundred parks. According to the Association, in 2015, Brazil reached the fourth position in the world ranking of new installations and the tenth position in the world ranking of accumulated installations.

In 2016, the wind energy participation reached 7.1% of Brazilian energetic matrix. About this energy source future, the president hopes that, through new auctions, the sector can reach 12% of the energetic matrix in 2020 and between 20% and 25% of the matrix in 2030.

Recognized as a sector that is still expanding because of the technological advances and the size of power plants installation, it is awaited that in the next few years the results get even better. Sérgio Augusto Costa reveals that for 2020, it is planned about 18 GW of installed potency in the wind sector.

Challenges The lack of substations and transmission lines are being the biggest villains of wind energy today, whether in Brazil or in the world.

According to Elbia Gannoum, one of the most important questions about this theme is in the growth speed of low impact renewable energies versus the speed to transmission lines enlarging.

For Sérgio Augusto Costa from VILCO Engineering and Consulting, another obstacle for Brazilian wind energy is about the difficult in financings for the sector. “Although BNDES (National Bank of Social and Economic Development in Brazil), has a financing politic for wind projects, due to today’s economic crisis, has no capacity to comply with the financing demand of projects in this area”.

Besides it, it is possible to find some obstacles on the logistic matter of wind energy. At this point, it is possible to highlight the difficulty in drain the production of wind aerogenerators and its components to the places where the parks are installed, once the road and marine national mesh still have no suitable dimension for the sector.

Elbia Gannoum, ABEEólica president Executive

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What can be expected in Nuclear Energy in Brazil for 2017

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Ivan Salati,

ABEN (Brazilian Nuclear Energy Association) vice-president

n 2016, Angra 1 and Angra 2 Power Plants hit part of these radioisotopes is produced in the country, records in energy production. These industries but almost all of them are imported by IPEN/CNEN have been operating with high productivity (Nuclear and Energetic Research Institute/ Nuclear factors, and are often among the best ones in Energy National Committee) and distributed to the the world for its class. Despite of corresponding Nuclear Medicine Centers. just to 1.4% of National capacity for installed Electric In 2009, the main suppliers, Canada and Netherlands, generation, they produce around 2.5% of total electricity paralyzed for more than one year the world supply. generation.

This crisis is likely to After deciding to happen again within the “IN THE HEALTH AREA, WE HIGHLIGHT resume its construction next few years, with the in 2007, Angra 3 possibility of Canada THE PERFORMANCE OF MORE THAN 2 Power Plant had leaving the market. In order MILLION NUCLEAR MEDICINE PROCEDURES its implementation for Brazil to overcome performed until the this threat, the RMB A YEAR. THESE PROCEDURES, PERFORMED IN stage of completing (Brazilian Multipurpose ABOUT 370 CLINICS, USING R ADIOISOTOPES the necessary civil reactor) Project is being works to begin the performed, and it will PRODUCED IN NUCLEAR REACTORS.” electromechanical set supplement radioisotopes up. Stopped in the end national needs for medicine, of 2015, today it awaits the resumption of enterprise, once industry and research, besides being important material the great part of necessary equipment is already ready for test equipment. the assembly to be initiated.

In the Strategic area, it is in progress a project from In the Health area, we highlight the performance of Marine for the construction of Nuclear Submarine. more than 2 million nuclear medicine procedures a The reactor prototype, in Iperó (State of São Paulo), is year. These procedures, performed in about 370 clinics, close to final stage of construction, and it is a milstone using radioisotopes produced in nuclear reactors. Today, in the technology development. The Submarine project

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Angra 3

allowed that in the 80’s Brazil could get the complete domain of nuclear fuel manufacturing, including the uranium enrichment technology, the most sensitive and strategical stage of nuclear fuel cycle, developed by Marine and IPEN/CNEN researchers, and that is still being developed.

Brazil has known uranium reserves that can supplement not only Brasil’s today installations and others to be built in the future, but probably will be able to be among the main world producers, if the national prospection that was partially performed in 1970 is complemented. Today, Brazil already explore the existent reserves in Caetité, State of Bahia. As we deplete Mina da Cachoeira open-air exploration, the preparations to Mina do Engenho exploration get advanced, as well as the studies to begin the Mina da Cachoeira underground exploration, scheduled for 2020.

Brazilian Nuclear Program has been characterized through the years by a lack of continuity politic, what caused large additional costs on power plants construction and other installations and also difficulties of retaining the knowledge acquired along the years. Despite of it, the program was capable to efficiently operate the existent potency reactors, besides developing important research programs that resulted in technological success of high relevance.

For 2017, it is awaited that Brazil proceeds with the

projects that are already being developed in this area, all of them viable to be done and important for the future of the country: a) Conclude Angra 3, with or without foreign capital, that, with Angra 1 and Angra 2, complete the necessary demand to propitiate the economic viability to nuclear fuel national production; b) Proceed with the Multipurpose Brazilian Reactor (RMB) project that will give autonomy to radioisotopes production, which has a great importance to Medical, industry and the research, avoiding that the country incur to international crisis expected to happen; c) Proceed to the Nuclear Submarine construction project, including the country in the development of a state of art technology that produces countless applications in several activities sectors. d) Support the Uranium exploration from the existents reserves in Caetité and have a detailed review about Uranium occurrence in the country, due to confirmation of other important reserves that may be explored in the future.

There is no lack of human and technological capacity in Brazil, however, it is essential to look at the future and take the opportunities that the nature and our researchers offer us. Despite of the crisis, 2017 is an important year to keep developing the Nuclear Program in Brazil, which has shown itself capable of contributing to several areas of social and economical development in the country.

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OIL & GAS

Alliance for Mexico Siemens and Mexican government close a deal to boost oil and gas production

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here is almost one thousand kilometers away from the Mexican Capital and Ciudad del Carmen, in Campeche State. And that is the starting point of Full Energy trip to the country, that today feels the reflexes of world oil crisis.

The city, that used to be an emblem of the energetic power of the country in Mexico Gulf, today faces several unemployment problems. The symbol of Mexican State Nationalism, Petróleos Mexicanos (Pemex), even suspended exploration and perforation work in new wells, causing a direct impact on the city life, that has a little more than 150 thousand inhabitants.

It was there where Full Energy visited AKAL-G, one of the innumerous Pemex platforms in the middle of Mexican Gulf. In each horizon point, it was possible to see many other oil production units. The employees live half of the month in the platforms and the other half

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with their families. Even facing hard times, this visit showed that Pemex is searching for solutions in order to circumvent the crisis.

This impulse is due a lot to the reform of energy sector in Mexico that now allows the private investment. In the wake of this changing stage, Siemens and the Mexican government signed an agreement that foresees several projects for the next ten years in different segments, including oil and gas.

The announcement was made in Ciudad del Mexico - the capital of the country – in the German company’s head office, in the presence of Siemens CEO, Joe Kaeser; Mexican Economy Secretary, Idelfonso Villareal, among other authorities. The company will invest US$ 200 million in a short term, aiming to boost the new technologies projects, industry digitalization, and the modernization of energetic sector management, with highlight to oil and gas area.

With all of this, Siemens, that has been in the country for 120 years, became one of the greatest suppliers of equipment and services for the oil sector in Mexico.

The energetic reform implanted by the Government of Enrique Peña Nieto aims to increase the volume of oil produced as of exploration of oil in deep waters.

Today Mexico produces 2.2 million oil barrels per day as of 256 fixed platforms installed in shallow waters. They are in total, 405 fields with more than 800 wells.

In an exclusive interview for Full Energy magazine, Joe Kaeser emphasized that the new agreement also includes the opening of new units, the generation of around a thousand job positions and the increasing of 20% in the local content of the manufactured products.

Today, Siemens has about 2 thousand suppliers in the whole country that correspond to 50% of the national content, a level that the company wants to increase to 70% in the next few years. Besides it, the company contributes with 23% of energy generation in Mexico.

The Trump Era As it was expected, the new United States President, Donal Trump, was also on the agenda of questions from journalists to the company executives. “We already had an experience with walls and it was not good at all, for both sides. We have to invest in dialogue, not in segregation”, said Joe Kaeser to the journalists present during the event. “Mexico can count on Siemens”, reinforced the CEO. The country lives in a pressure state since the beginning of Trump’s government. This is because the north American president blames Mexico on attracting Yankee companies, taking job positions and investments away from the United States.

This is what happened with Ford Company in the beginning of this year. The automobile manufacturer yielded to Trump pressures and announced the canceling of US$ 1.6 billion in investment on the construction of a FULL ENERGY

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Download Zappar app and watch the interviews made at AKAI-G (learn more on page 5)

Siemens and the Mexican Government signed an agreement that foresees several projects for the next 10 years in different segments, including oil and gas

new factory in Mexico. In a bulletin, the car company explained the reasons for the decision: “the conditions of the market today and the Trump election”.

Against it all, the Siemens CEO affirmed: “Siemens work with Mexico and for Mexico”. In the interview for Full Energy magazine, Kaeser also talked about the market in Latin America: “Not only Mexico, but also Brazil and Argentina. We have thousands of people that need infrastructure, energy and industrialization of their economy. These regions are very interesting for us to develop the economy together”.

Louise Goeser, Siemens chief for Mexico, also reinforced the country big potential. “We are talking about one of the most interesting, competitive markets and with a huge growing potential”.

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José M. Aparicio, VP of Siemens Power & Gas Latin America, reinforced at the event about the importance of dialogue for the growth in the country. “We need to search dialogue and then, bring solutions about how to cooperate with this country development in matters like energy generation, mobility, besides investing in factories that produce locally”.

“This is an important step and example so this can be repeated in other countries”, said Alexandre Debler Berentsen, Siemens Oil & Gas director.

At last, Alejandro Preinfalk, Siemens VP Energy Management, said that the alliance for Mexico is a great opportunity, showing this way the “compromise we have with Mexico and turning this alliance into the future development”. *Full Energy traveled By Siemens invitation

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BIOMASS

Off and Running: Sugar cane harvesting has begun The foresee sugar cane milling in Brazilian Center-South region must reach 612 million tons

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Download Zappar app and watch the videos below (learn more on page 5)

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n April the 1st, the sugar cane harvest period 2017/18 in Brazil has officially begun. The sugar cane milling in Brazilian Center-South region must reach 612 million tons during the season, according to an estimative reported by Datagro Consulting. New foresee indicates a raising of 1.1% over the last harvest period.

The Datagro Consulting president, Plinio Nastari, was present at the event of the opening in sugar cane harvest period 2017/18, in Ribeirão Preto, SP, promoted by the company. At the occasion, he highlighted the scenery of the new harvest that is beginning. “Sugar cane fields are developing in a satisfactory way in the Center southern region.

In the Northeastern , there is a concern related to them, due to the lack of rains”. According to Datagro, the sugar cane processing in the Northeast must be 45 million tons.

Still according to the Consulting company, the industries must allocate more raw material to the sugar production – the production mix must be of 47.4% for the commodity and of 46.3% for ethanol. As a result, sugar production must raise 3.3% reaching to 36.8 million ton. On the opposite side, there will be a retreat of 1% in ethanol production, totalizing 25.3 billion liters.

Datagro Meeting showed projections about sugar cane harvest in cicle 2017/18

The event in São Paulo discussed great themes directed to world agriculture

Hope Analyzing the current situation on sugar cane harvest in a world scenario, Plinio Nastari also highlights the importance of this productive sector to Brazilian Economy. “Agribusiness, such as Agroenergy, are the solution for this bad moment that Brazil is living. These sectors generate job positions, income, and growth. For this reason, they need to be valued for what they are capable of doing”.

About the market evaluation of season 2017/18, Carlos Franco, commercial director of Louis Dreyfus Company Brasil, detached that the weather can be a determinant factor for the sugar cane quotations.

“The weather will have a fundamental role in the price definitions along the next months, especially if it challenges the production growth expected in the North Hemisphere”, he evaluated.

For Nastari, this is a harvest of hope. “In this cycle, we expect to have a number of important definitions happening within that sector, mainly through the discussions that take place in Brasilia in formulating a new regulation for the sector.”

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HYDROELECTRICITY

A giant on the borders of Madeira River

Aerial view of Jirau Hydroelectric Power Plant

Jirau Hydroelectric Power Plant (UHE) will be responsible for 3.7% of all electric power produced in Brazil, being the third biggest generator in the country and one of the twenty biggest Hydrelectric in the world

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fter seven years of Works, at the end of 2016 it was opened, in Porto Velho (state of Rondônia), the Jirau Hydroelectric plant, with a capacity to generate enough power to serve more than 40 million people and 10 million residences. The Power Plant was constructed with an unprecedented amount of turbines moved as run-of-river, in other words, with the power of Madeira river watercourse. Jirau will be responsible for 3.7% of all the electric power produced in Brazil, being the third biggest generator in the country and one of the twenty biggest Hydroelectric in the world.

Embedded in Amazon region, the implementation of Jirau imposed logistic and socio-environmental responsibility

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challenges. Located on the borders of Madeira river, the venture began in 2009, composed by 50 turbines distributed in two Powerhouses, with an installed capacity of 3,750 MW and ensured power of medium 2,184.6 MW. Jirau Hydroelectric Plant was considered one of the most important Works from PAC- Programa de Aceleração do Crescimento (Growth Acceleration Program), and it must reduce the generation of thermoelectric energy produced from fossil fuels. This way, the country reduces the CO2 emission in about six million tons per year. According to the UHE communication board of directors, Jirau is a demonstration that it is possible to implement big Hydroelectric Plants in the Amazon region in a sustainable way.

Auction The venture got off the drawing board after the auction 005/2008, promoted by the Federal Government in May 2008, which gave the public grant of using the public good for Jirau Hydroelectric Plant (UHE Jirau) at Madeira river (Porto Velho , RO) and the following exploration of its energetic potential for the period of 35 years.

The companies group that won the auction became a Specific Purpose Society, the Sustainable Energy of Brazil (Energia Sustentável do Brasil S.A.). The share capital is completely held by ESBR Participações S.A., whose shareholders are the following companies: ENGIE (40%), which is the new denomination of GDF SUEZ; Eletrobras Eletrosul (20%) and Mizha Participações S.A. (20%), which is a Mitsui & Co. subsidiary.

ESBR is the company responsible for the construction, operation, and sales of the energy produced in Jirau UHE. According to the company, the public grant allows the global cost reduction of the works in R$ 1 billion that will be given to the consumers as cheaper power.

Technologies and environment Jirau is the biggest Renewable Powerplant ever registered at Mecanismo de Desenvolvimento Limpo (MDL – Clean Development Mechanism) of UN, confirming the sustainability and, social and environmental viability of hydroelectric ventures in Amazon. Sustainable power in Brazil believed in a new engineering concept for Amazon Region since the beginning. Jirau has as its main objective to offer a clean and cheap power, aiming for a smaller environmental impact.

The Brazilian Hydroelectric Plant has the biggest bulb kind of turbines in the world, with a capacity of unit generation of 75 MW. Since the beginning of the commercial operation with the first Unidade Geradora (UG- generator unit) in September 2013, the UGs have shown an excellent performance. Besides it, the UHE turbines showed a yield above of what it was expected in the concession notice from Agência Nacional de Energia Elétrica (ANEEL – National Agency of Electric Power), which is 93%. It means a bigger capacity to transform the strength of Madeira river in power.

Santo Antônio hydroelectric powerplant In 2017, also in Madeira river, it was finished the construction of Santo Antônio Hydroelectric Powerplant.

The venture has the capacity to provide electric power enough to fuel around six million inhabitants. The venture also has in its project 50 bulb kind turbines, totalizing 3,568.3 Megawatts of installed capacity.

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ARTICLE

Brazil: “The country of today!”

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razil has about 200 million inhabitants (190,755,799 to be more accurate according to the last census done in 2010 by the Brazilian Institute of Geography and Statistics - IBGE), standing out as the fifth most populous nation on the planet. The culture of Brazil results from a mosaic of peoples and races that colonized and immigrated to the “Land of Vera Cruz” from our “discovery” by the Portuguese on April 22, 1500 to the present days.

It is interesting to compare the electric power consumption per person (kWh/person) in the world and in Brazil in 2013. Brazil shows an average value of 2.59 kWh/person. Compared to some more developed countries, as United States or Europe countries, that actually consume above 10.9 kWh/person, the country growth potential is of four times the current level of consumption.

Huge groups and foreign companies are in a clear process of entrance in the country, whether through mergers & acquisitions of assets or the development of their own infrastructure projects. The current government of the president Michel Temer adopted new terms and conditions for infrastructure contracts that are designed to attract investors, as it seeks to improve efficiency and raise cash in the recessionbattered economy. The focus are the bidding to build or operate airports, roads, mining and energy projects, as well as grain and fuel depots, and attract the foreign investors. The main ideas is that the markets rather than regulators will determine taxes and rates of return, and investors won’t be required to partner with state owned companies. With the called Investment Partnership 28

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Sérgio Augusto Costa, Executive director at Vilco Engineering and EMD Brazil

Program (“Programa de Parcerias de Investimentos” – PPI), the government’s goal is to raise R$ 24 billion (US$ 7.75 billion) with concessions only in 2017.

The PPI considers the concessions and privatizations of the following infrastructure: - Concession of airports: Porto Alegre, Salvador, Florianópolis and Fortaleza.

- Concession of load terminals: Porto de Santarém / PA (fuels), Rio de Janeiro / RJ (wheat).

- Concession of highways: Path BR-364/365, between Goiás and Minas Gerais, path BR-101/116/290/386, in Rio Grande do Sul state.

- Concession of railways: North-South, Ferrogrão, Fiol (West-East Integration Railway).

- Hydroelectric concession: São Simão (on the border between Minas Gerais and Goiás states), Miranda (Minas Gerais), Volta Grande (São Paulo), Peri (Santa Catarina) and Agrografo (Santa Catarina).

- Sale of energy distribution companies previously managed by ELETROBRAS, state owned company and major Brazilian electric utilities company, in: Roraima, Acre, Goiás, Amazonas, Rondônia, Piauí and Alagoas states.

- Auction of areas for oil and gas exploration: 4th round of bidding for marginal oil and gas fields: bidding in the second half of 2016, auction in the first half of 2017; 14th round of bids for oil and gas blocks under the concession regime: announcement in the first half of 2017, auction in the second half of 2017; 2nd round of bidding for the pre-salt under the sharing regime: announcement in the first half of 2017, auction in the second half of 2017.

- Concession of water and sewage companies of:

Rondônia, Pará and Rio de Janeiro states. transference of the stakes of the project that consist of - Concession of mining areas: Phosphate (between 2,169 km (1,347.754 miles) of lines and 21 substations, Paraíba and Pernambuco states), Copper, Lead and Zinc of which 8 were new and 13 were extensions of existing (Tocantins), Coal of Candiota (Rio Grande do Sul) and facilities to be built in Rio Grande do Sul state. In total, Copper (Goiás). the works will require investments of R$ 3.3 billion (US$ - Lotteries: Lotex.

1.065 billion) and, when concluded, will have annual The first auction was the CENTRAIS ELÉTRICAS revenue of R$ 336 million (US$ 108.452 million).

DE GOIAS - DISTRIBRUIDORA (Celg-D) energy The Chinese invested about US$ 45 billion in the distributor in Goiás state, which was acquired by the Brazilian electric sector, in the last 6.5 years. Before the Italian group ENEL BRASIL, controlled by the Italian STATE GRID acquisition of Power Company of Sao multinational ENEL, for R$ 2.187 billion (US$ 705.9 Paulo State (Companhia Paulista de Força e Luz-CPFL), million) on 30th November 2016. The privatization and the almost acquisition by SHANGAI ELECTRIC of process of Celg-D, transacted by an auction on the BM transmission line projects of ELETROSUL, the CHINA & FBOVESPA, was officialized on 30th January 2017. THREE GORGES (CTG) company, which operates the Of the total value of the sale of R$ 2.187 billion (with Three Gorges Hydroelectric Power Plant (the largest 28.03% premium, US$ 700 in the world), entered in million), R$ 1.065 billion the Brazilian market in WITH THE ABSENCE OF A DEVELOPED (US$ 340.9 million) 2013, with the acquisition CAPITAL MARKET, THE L ACK OF will be transferred to of Portuguese assets ELETROBRÁS, which from the ENERGIAS DE INFR ASTRUCTURE AND A POPUL ATION OF holds 50.93% of the PORTUGAL (EDP). This 200 MILLION INHABITANTS, BR A ZIL REACHED company’s shares. The transaction was of R$ 17 rest of the shares were billion (US$ 5.48 billion), A STATUS OF THE COUNTRY OF TODAY FOR from the Goiás State and including hydropower, INVESTMENTS OPPORTUNITIES a group of workers. wind power and small The first concession hydropower assets. CTG is auction to the private initiative of 2017 was done to the today the country’s second largest private generator of the airports, for the transfer of the administration of the Brazilian electrical system, with installed capacity of 8.27 terminals of Porto Alegre, Florianópolis, Salvador and GW, back only of ENGIE, with 11.954 GW of installed Fortaleza cities. The minimum investment projected to capacity under operation. the four airports together is R$ 6.61 billion (US$ 2.12 As example of strong presence of Chinese companies billion) during the concession period, which will be 30 in electric sector, we have the recent acquisition of the years (renewable for further 5 years), with the exception CPFL by the giant Chinese STATE GRID by the value of of Porto Alegre airport, which it is 25 years (extendable R$ 14.19 billion (US$ 4.59 billion) to 54,64% of the total for another 5 years). share of the company. The price paid in cash was R$ 25.51 Currently, six airports are already under private per share (US$ 8.23). It was also closed the acquisition management. The terminals of Guarulhos, Brasília, of CPFL Renewables (CPFL Renováveis), controlled by Viracopos, Galeão, Confins and São Gonçalo do CPFL Energy (CPFL Energia), by the amount of R$ 12.20 Amarante, accounted for 46.7% of shipments and per share (US$ 3.93), or R$ 3.17 billion (US$ 1.023 billion). landings on domestic and international flights in 2016.

In the electric sector, the power transmission lines The M&A market is very active in Brazilian electric is attracting many investors. Last year the Brazilian sector. SHANGAI ELECTRIC, a Chinese company, is close government awarded licenses for companies to build and of concluding the acquisition deal of several transmission operate 6,126 km (3,829 miles) of power transmission projects with ELETROSUL, an ELETROBRAS subsidiary lines, finding investors for 21 of 24 lots offered in an that operates in Southern Brazil. The deal considers the auction held on 28th October 2016. The Brazilian FULL ENERGY

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Electricity Regulatory Agency (ANEEL), responsible under operation, should happen until September 30th for organizing the auction, estimates investments of 2017. The auction will consist of three lots of assets and about R$ 11.6 billion (US$ 3.71 billion). It was the best the concessions will be granted for a period of 30 years. results for this sector since 2012. The average discount Lot A is made up of the São Simão Hydro Power Plant offered by the lots was 12.07%, according to ANEEL. HPP (1,710 MW). In Lot B, subdivided into three others, The winning concessionaires will have an annual there are the Jaguara (424 MW), Miranda (408 MW) and contracted remuneration of R$ 2.124 billion (US$ 679.83 Volta Grande (380 MW) HPPs. Lot C has the Agro Trafo million). The term of the works varies from 42 to 60 plant (14.04 MW).

The total installed capacity of the Brazilian electrical months and the concessions of 30 years are valid from the signing of the contracts. The main foreigner players system is 151.6 GW, with 61% of Hydropower (92 GW), that won the auction were the Canadian asset manager 27% of Thermoelectric (41 GW), 7% of Wind Power BROOKFIELD, which won three lots in partnership with (10.4 GW), 3.5% of Small and Mini Hydropower (5.4 Spanish company CYMI, and energy company CTEEP, GW), 1.3% of Nuclear Power (1.9 GW) and 0.02% of controlled by Colombian holding company ISA. The Photovoltaic Plants (23.4 MW) dispatched by the National Chinese company STATE GRID, which had been active in Grid Operator. The Photovoltaic share should change previous auctions, refrained from this bidding. The next very soon, as result of the Energy Reserve Auction held transmission auction with 35 lots of projects that provide on November 13th 2015. This auction contracted 929.34 MW of installed capacity, for the installation of 7,400 will demand investments kilometers (4,598.147 AS EX AMPLE OF STRONG PRESENCE OF of R$ 4.4 billion (US$ 1.4 miles) of new lines in 20 CHINESE COMPANIES IN ELECTRIC SECTOR, billion), and the plants states of the country will th must starting operation be held on April 24 2017, WE HAVE THE RECENT ACQUISITION OF THE at the headquarters of from November 1st 2018.

COMPANHIA PAULISTA DE FORÇA E LUZ The Power Purchase BMF & BOVESPA S.A. in Agreements have duration São Paulo city. According (CPFL ) BY THE GIANT CHINESE STATE GRID of 20 years. to ANEEL, together, these The government is projects will require R$ 13.1 billion (US$ 4.19 billion) in investments and will also working with Congress in other important areas generate a maximum Annualized Revenue Allowed to attract investors. The recent termination of the rule (“Receita Anual Permitida” – RAP) of R$ 2.7 billion (US$ that obligates PETROBRAS to be the sole operator 871.49 million) and generation of about 30 thousand jobs. of the pre-salt paved the way to accelerate the pace of Those projects were recently included in the Investment investments in the sector, and permit the increasing of the participation of other oil giants in the production of Partnership Program of the Brazilian government.

Big players of power generation are interested in oil and gas in Brazil and the increasing of the country’s this auction too. ENGIE BRASIL ENERGIA (formerly Royalties possibilities. Today, private companies TRACTEBEL ENERGIA), controlled by the French account for 17.1% of the oil produced, which can reach multinational ENGIE (formerly GDF-SUEZ, plans to 30% in 10 years, according to the Brazilian Association invest R$ 2.5 billion (US$ 800.18 million) in its entry of Independent Oil and Gas Producers (ABPIP), the into the energy transmission sector, through this next association that represents the sector.

Therefore, classified as an emerging market, the absence transmission auction. This investment equals just over half (53.3%) of the company’s investment in generation of a developed capital market, the lack of infrastructure projects already contracted between 2017 and 2019, of R$ (roads, harbors, railroads, airports, power generation, power transmission, etc.), and a population of about 200 4.687 billion (US$ 1.5 million).

Still in generation, the Brazilian government announced million inhabitants, Brazil reached a status of “Country that the hydroelectric concession auction, to the assets of Today” for investments opportunities.

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OIL & GAS

Petrobras under new command

In just a few years, oil extraction must overcome 3.4 million barrels per day, and the company will be one of the greatest in the world industry again

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he origin of the historical crisis in Petrobras is not just connected to Lava Jato Operation, the biggest investigation on corruption and money laundry that Brazil ever had. In 2010, the country had already turned over a new leaf from the 2008 world financial crisis, pointing to a record annual growth of 7.5% - the biggest PIB (Gross Domestic Product - GDP) since 1986. According to IBGE (Statistical and Geographical Brazilian Institute), the investments soared about 21.8% while the families consumption grew 7% and the government expenses grew 3.3%. To conciliate with this demand, the industry increased 10.1% its services and the farming, on the other hand, grew 6.5%.

According to Adriano Pires, director and founding partner of CBIE (Brazilian Infrastructure Center), the determining factor of this crisis is in the bad management.

“The main explanation was an excessive interference from the government on Petrobras, putting aside the economic rationality and changing the company to a political instrument. Petrobras expenses during the first government of President Dilma, with diesel and gasoline sales under the market rates, reached the amount of US$ 40 billion”.

Another causative agent for the historical multinational Brazilian crisis is on the bidding notices barely verified, that generate additives, and consequently, increased the costs and caused stoppage on the works because of impacts in negotiation. According to Alberto Machado, executive

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director of Abimaq (Brazilian Association of Machines and Equipment) and Professor at Getúlio Vargas Foundation (FGV), there are still other aspects to be highlighted.

“What took the company to the current situation were the brash goals with investments and amounts too high in the business plans that were later showing themselves unviable.

There was also an excessive use of workforce hired by the company, projects with scopes barely defined, elevated concentration of contracts in a few companies – some of those companies even with few tradition – and starting of works with no project finalization” he comments.

Recovery Phase Even still carrying the burden of being the most indebted oil industry in the world, Petrobras gives its first signals that it will overcome the crisis and revert the damage caused by the scandal of Lava Jato operation and the managing problems that determined the company command within the last years. Because it is recovering the trust of the investors, the multinational is slowly getting back to a position in the market from where it should have never got out.

In 2016, Petrobras showed an upper of 168% in its accumulated stocks in the year, making it possible to climb three steps in a market value that gather the greatest companies in the sector, which it occupied the

third place in 2008. In January 2016 the company in its worst moment was in the 11th position. But, according to the ranking, Petrobras got to show good results at the end of this same year, rising to the eighth position in October.

Despite all the drama lived during the last years, the company still has a strong brand. That is what Adriano Pires, CBIE (Brazilian Center of Infrastructure) director and founding partner defends. “Petrobras is a company with great oil reserves, a good quality technical framework, and technology of oil expansion in the sea. So it has all the conditions to be again a company with all credibility and that generates wealth for the country, and that gets back to investment and generates work positions. I think the new company management already realized that, reducing costs and reformulating investments. They are putting the company on the tracks again, in a new direction�.

Strategic plan Pedro Parente, named by the Federal Government for the presidency of Petrobras is recognized for his management of the crisis, which was one of the reasons to be chosen to lead the biggest Brazilian company. The new representative has his greatest challenge in continue the efforts to solve the stateowned company debt, that was close to R$ 450 billion at the end of 2016.

Adriano Pires, CBIE (Brazilian Infrastructure Center) director

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OIL & GAS

According to Parente, the company will anticipate the goal of reducing the leverage (the relation between debt and cash generation) to before 2020.

“The debt cannot be two and a half times superior to the cash f low generation. We will work to reduce the indebtedness and improve the revenue, with a politic of fuel prices with business focus”.

For José Goldemberg, Fapesp (Support and Research Foundation of São Paulo State) President, the nomination of Pedro Parente as the new president for the state-owned is excellent. “He traced guidelines to correct the course of the company and take Petrobras back to its origins, which is to produce oil in association with foreign companies, sharing the risks and earnings and do not expand in actions like gas distribution”.

Under Parente management, Petrobras announced, in September 2016 its Strategic Plan for the period from 2017 to 2021 with two main indicators that aim the increasing of its workers safety and financial recovery of the company in a short term. The target is to reduce the recordable accident rates, an industry indicator that measures all kinds of accidents and incidents occurred, from the current 2.2 million men per hour in company operations as registered in 2015 to 1.4 until 2018, and get to 1 million in 2021.

The projection was showed by Parente to the president Michel Temer in a meeting at Palácio do Planalto. According to the President of the oil company, one of the plan horizons is the faster reduction of the company debts. In case Parente expectations get confirmed, in three years, the stateowned will get back to growth so that in five years become the fourth or fifth biggest company in the sector, with a production of 3.4 million gas and oil barrels per day.

Plínio Nastari, Datagro President, believes that the state-owned recovery will happen before the deadline expected by Parente. “In a few years, the extraction must overcome 3.4 million barrels per day, and the company will be one of the biggest of world industry again”.

On the other hand, for Alberto Machado, Abimaq (Brazilian Association of Machines and Equipment)

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executive director and Professor at Getúlio Vargas Foundation (FGV), the prime concern of this projection is not the deadline, but the trend. “It doesn’t mean that nothing will be fixed suddenly but as soon as the performance indicators start to show some improvement, it will certainly be a sign that the growth is being recovered”.

Still, about the new Petrobras Strategic Plan, Adriano Pires believes that the premise of reducing costs and keep the investments plans are right decisions, but the numbers are too optimists. “The challenges are huge, he has the total competence to take Petrobras back to the profit tracks”, he adds.

Pedro Parente, Petrobras President

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