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Montevideo, May 24th 2024 - 22:20 UTC



Brazil conditions any future oil pre-salt bidding to local industry capacity to supply equipment and services

Thursday, December 26th 2013 - 08:17 UTC
Full article 3 comments
Government will define which is the adequate exploration rhythm for pre-salt development Government will define which is the adequate exploration rhythm for pre-salt development

Brazilian Government has decided that any future bidding rounds involving pre-salt blocks will only be launched according to the local industry capability to supply the demand in equipment and services needed by the sector. Local industry has been struggling to keep up with the demand placed by O&G players already involved in pre-salt E&P in Brazil, which are all Petrobras partners, such as BG and others.

 A study is being done by the Brazilian government to define which is the adequate exploration rhythm for pre-salt development that will allow local industry to keep up with demand realistically.

This is an important initiative by the Brazilian government because it will allow sector of local industry to develop technologies and services required by the deepwater pre-salt players. This is vital to protect local industry development and not risk scuttling local industry as has been done in countries such as Venezuela and Mexico. It will also help local industry to become more competitive internationally in order to compete with established foreign goods and services suppliers.

Some equipment such as those used in deepwater subsea fields are still mostly imported, yet there have been recent gains by local industry in competing with foreign suppliers. Tooling for ROVs and pipe pigging are some of the few items that are increasingly being produced locally, yet there is still a long way to go in order to locally supply all the subsea equipment needed for the installation of a functioning subsea field.

The fact that foreign companies with experience in deepwater equipment manufacture are opening manufacturing plants in Brazil and are also partaking in technology transfer and local research initiatives is of utmost importance as it allows local industry to develop a specialized workforce, which is one of the important hurdles to overcome in order to continue developing Brazil’s pre-salt potential.

Top Comments

Disclaimer & comment rules
  • ChrisR

    The Brazilian government have shown time and time again that they want to control the market.

    That does not work in soft, non safety critical goods such as cars and bank loans but they still will not learn.

    Technology transfer is a good thing to aim for, but to suggest, as this article seems to, that the government are suddenly going to get fully fledged local companies handling the pre-salt environment for oil supply is ludicrous in the extreme.

    Pushing ahead for the sake of politics with such a programme WILL result in the loss of lives.
    Obviously at this point the government will hold its collective arms up in horror and plead “It wasn’t me Gov, honest!”

    There are a number of firms throughout the planet that have EXPERIENCE of safe operation for their products in this area and the use of these products will minimise the deaths. There will always be deaths when pushing the frontiers of this sort of work, which should not mean that lives should be thrown away needlessly for political reasons.

    Dec 26th, 2013 - 12:36 pm 0
  • Brasileiro

    Good! Congratulations Mercopress!!

    Dec 26th, 2013 - 10:12 pm 0
  • yankeeboy

    Silly Marxists Monkeys, can't they see how the state has ruined the oil business in Venezuela and Mexico.
    Sheesh will these idiots ever learn?

    Dec 27th, 2013 - 02:48 am 0
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