Aug 13, 2012

The BNDES, Petrobras and the Financier of Studies and Projects (FINEP) have signed a technical cooperation agreement in the amount of R$ 3 billion to implement Inova Petro, a joint action plan to promote innovation projects in the supply chain of goods and services in the oil and natural gas industry.

The agreement was signed on July 13, at Petrobras’ headquarters in Rio de Janeiro. The event included the minister of Development, Industry and Foreign Trade, Fernando Pimentel, as well as the minister of Science and Technology, Marco Antonio Raupp, in addition to the BNDES’ president, Luciano Coutinho, Petrobras’ president, Maria das Graças Foster, and Finep’s president, Glauco Arbix.

The goal of Inova Petro is to help stimulate private investment in the sector aimed at competitively and sustainably expanding local content in projects from the oil & gas industry. This way, the joint work between BNDES, FINEP and Petrobras will enhance technological support in a critical area for the development in the country

One of the conditions to access resources is that projects should be fully developed in the national territory. Projects that are not likely to receive support are those that internalize technologies already developed by the matrix companies, and applying parent companies in Brazil.

The program funds will be aimed at developing technologies related to the following segments: surface processing projects, applicable when processing oil & gas; sub-sea installations, as well as the array of equipment and products that are used below the water surface; and installation of oil & gas offshore wells.

Inova Petro is expected to last up to December 31, 2016.  The BNDES and FINEP, separately, will provide support up to R$ 1.5 billion. Petrobras will be responsible for the technical support of the program and will monitor the development of projects aimed at mitigating technical risks in the process. Financing is limited to 90% of the total project value.

The BNDES will support suppliers from the oil & gas industry through its lines: Innovation, from the BNDES Oil & Gas Program, Technology Fund (BNDES Funtec), and/or variable income instruments, through BNDESPAR. Finep funds will be offered in terms of credit, cooperative and economic grants between Technological Scientific Institutions and companies.

Features of Inova Petro – The selection process of companies eligible for support will be carried out in stages, disclosed in the launch notice. It will include an evaluation committee formed by experts from the BNDES, FINEP and Petrobras, which will be responsible for reviewing proposals. The program has some features to enhance the development of innovations in the Brazilian oil & gas sector. They are:

1 – Combination of instruments – Joining reimbursable and non-reimbursable resources will provide greater competitiveness to the program since it will expand the range of resources to develop innovation projects in the sector.

2 – BNDES-Finep Partnership – Coordinated effort of institutions will add and explore the complementarities between the various mechanisms to support innovation.

3 – Petrobras’ strategic definition of eligible sectors for support - Petrobras will help select the main segments that present technological challenges and that have great market and national development potential.

4 – Cooperation in the supply chain of oil & gas – One of the main goals of the program is to foster cooperation and collaboration between companies in the supply chain of the oil industry, as well as between these companies and research centers. The initiative will help increase the chances of success of business plans and innovative projects.

5 – Technical Evaluation Committee – The committee will be multidisciplinary. Petrobras will contribute to the technical analysis of projects, assessing whether the applicant will be able to complete the development. The BNDES and FINEP will assess the consistency of business plans.

6 – Multiple calls-to-bid – Possibility there will be several public calls-to-bid, allowing new themes, which are considered strategic from the standpoint of innovation and local content, to enter the program.