The Brazilian Government launched Inova Petro Program (IPP) last August 13, 2012. IPP is a US$1.5BI joint initiative from Petrobras, the Brazilian National Bank (BNDES) and the Brazilian Innovation Funding Agency (FINEP) to fund innovation projects on the Brazilian oil & gas supply chain, especially on R&D, engineering, and innovative products, services, technologies and/or processes for the oil & gas supply chain. First RFP is expected to be available on September, 2012.
IPP funds will be available from September 2012 on to Brazilian companies holding US$8MI plus Gross Operating Revenues (GOR), individually or in association with other Brazilian or foreign company. Brazilian companies holding less than US$8MI GOR might still apply for IPP funds if associated with other Brazilian or foreign company that meets the GOR requirement.
In case of association among Brazilian and foreign companies (JV's, consortia and alike), or of Brazilian companies controlled by foreign companies, IPP shall require the innovative technology to be transferred to the Brazilian company.
IPP funds are expected to be available until 2017 for innovative technologies applied to the following main areas:
- Oil & Gas Field Technology - new technologies to be applied to support platform and vessel operations;
- Oil & Gas Subsea Technology - new technologies to be applied to support subsea operations;
- Oil & Gas Offshore Technology - new technologies to be applied to support offshore operations.
- Projects shall be carried out exclusively in Brazil and be adherent to the Main Areas;
- Transfer and/or incorporation of technology shall not be funded by IPP;
- Minimal project funding: US$500.000.00;
- IPP shall fund up to 90% of the minimal project funding;
- Top maturity: 5 years.
- Credit Agreement;
- Private Equity Investment;
- Economic Subventions.
BNDES and FINEP will conduct follow-up inspections according to their internal procedures. Petrobras will provide with technical support in order to mitigate technical risks of the projects.