MercoPress. South Atlantic News Agency

Oil industry brings Norway and Brazil closer.

The Brazilian business delegation present at the Oil Offshore Northern Seas fair in Norway captured deals worth over 50 million US dollars, the establishment of two oil industry support plants in Brazil and prospects of closer working contacts with the Norwegian government owned Statoil.

The main contract is for the building of a rig support vessel for Norskan, a company that already operates with Petrobras platforms in Brazil.

However the greatest potential is Norway's decision to look for new oil provinces where to operate since the North Sea production has peaked and is beginning to decline.

"Norwegian oil is running out and the local industry in Stavanger is asking itself where do we go from now?" said the Rio do Janeiro Oil and Naval Industry minister Wagner Victer.

Actually Statoil the Norwegian government oil company began international expansion in 1999 when its production peaked at the current one million barrels per day.

"We have two great challenges: sustain the current Norwegian oil production and expand overseas", underlined Brazilian born Jorge Camargo who is Statoil vice-president adding that "our immediate target is 100,000 barrels per day in Brazil where we already have ten exploration areas in association with Petrobras".

Mr. Camargo said that the reserves/production ratio of Statoil is down to 8 years while in Brazil it stands at 18 years.

"Statoil has overseas operations in twelve countries but has only been in Brazil since 2001", said Mr. Camargo who pointed out that Statoil has "one of the leading technologies for oil recovery in reservoirs: most companies only manage 25%, we have reached 75% in the North Sea".

As to the support plants to be established in Brazil one of them will manufacture special paints for vessels and oil rigs and the other fiber panels for use in platforms. Another Brazilian company will install the Rolls Royce thermal turbines in Petrobras P-51 rig.