Representatives from Brazil’s government and oil and gas industry advocated strongly for British investment at UKTI’s panel discussion on Brazil Tuesday morning.
“Several companies are going to Brazil, and now is the time to go,” said Carlos Camerini, manager of Brazilian nonprofit ONIP, which specializes in maximizing local content in the oil and gas sector.
Brazil boasts impressive numbers: 15.7 billion boe of proved reserves, and 15.4 billion boe recoverable in the Transfer of Rights, Lula, and Sapinhoa field deepwater fields. Petrobras plans an investment of US$236.7 billion over the next five years, with US$106 billion going toward production development, US$24 billion toward exploration and US$16 billion towards infrastructure and support.
The pipelay vessel industry is expected to boom over the same time period, rising 15% per year by 2017.
One of the challenges discussed were Brazil’s local content requirements, which currently requires a minimum of 65% of local goods and services. Companies who establish themselves in Brazil can be counted as local companies. But the panel stressed that small and medium-sized companies have a place in Brazil, urging those to establish partnerships.
Investment in research and development was also important, with Petrobras eyeing pre-salt development, expected to produce 2 million b/d by 2020. Companies such as Schlumberger, Baker Hughes, Halliburton, FMC Technologies have already established facilities at Petrobras’ CENPES technology park, with more facilities under construction from BG Group, Seimens, and GE. CENPES boasts partnerships with 88 universities and an investment of US$1.1 billion.
Brazil’s first pre-salt bidding round, expected November, will offer production sharing agreements for its Libra field in the Santos basin, 170km off the coast of Rio de Janiero, and covering 1500sq km.
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