Oil & gas Opportunities in Brazil

An Expert's View about Energy in Brazil

Posted on: 22 Sep 2010

Brazil is the largest energy market in South America and has the second largest oil reserves in Latin America. Opportunities for UK Oil and Gas companies in Brazil are growing.

Sector briefing Oil & gas Opportunities i n Brazil Why Brazil? Brazil is the largest energy market in South America and has the second largest oil reserves in Latin America (after Venezuela). The country achieved net oil self-sufficiency in April 2006 as production reached 1.88 million barrels of oil per day. Now, Brazil is producing over 2 million barrels a day (boed). Currently, more than 80 percent of the production comes from the Campos Basin but significant new discoveries are being made in the Santos and Espírito Santo basins in the Southeast of the Country. The State-run company Petrobras is still the dominant player but the end of state monopoly in 1997 opportunities and an introduction to other attracted most international oil companies, relevant issues. including Shell, BG, BP, Exxon, Statoil and Chevron. ?Specialists estimate that the pre-salt offshore area in Find general information on Brazilian market Brazil may contain 56 billion conditions on UKTI?s website. The Doing Business Guide for Brazil gives an overview of barrels of oil. The new big Brazil?s economy, business culture, potential discoveries in this region can opportunities and an introduction to other make Brazil the 6th largest oil relevant issues. Find general information on Brazilian market and gas producer in the conditions on UKTI?s website. The Doing world? Business Guide for Brazil gives an overview of Brazil?s economy, business culture, potential UK Trade & Investment Sector briefing: Oil and Gas opportunities in Brazil There may be a further increase in the number Opportunities of mobile rigs as new fields are developed ? 29 rigs to be contracted and 28 to be leased up to Opportunities for UK Oil and Gas companies in 2017 making a total of 57 drilling rigs. Any new Brazil are growing - key areas are detailed rigs will require the usual range of general below: services and materials, such as mud, cement, tubulars, well heads and consumables. The Big projects existing drilling support services will have to be supplemented to provide any additional Petrobras plans to invest US$ 140 billion under requirements. its 2010-2014 business plan (an average of US$ 28 billion per year). The Board of There is an increasing demand for horizontal Petrobras also approved a set of projects with wells to be used in pre-salt layer drilling total investments of around US$ 250 billion for activity. Some horizontal wells are estimated to the post-2014 period. Part of this post-2014 reach more than 5000m depth. investments represent the development of projects that are already included in the 2010- With regards to subsea, activities will range 2014 portfolio but have time lines which are over the whole spectrum of installation of longer. pipelines, flowlines, umbilicals, wellheads, Xmas trees and manifolds, anchor systems, The programme includes the development of and the maintenance of these facilities. 45 platforms, 49 ships, 195 vessels, 4 gas treatment plants and new and upgraded Support will also be needed for ongoing drilling refineries. and completion operations, pipeline and seabed surveys and more general inspection, repair Other International Operators are also and maintenance. progressing in Brazil. According to the Brazilian Petroleum Institute, the International There will be an increasing demand for ROVs companies plan to invest around US$ 34 billion and tools able to operate, and perform more up to 2012. complex tasks in deeper and deeper water Upstream Downstream The Petrobras Business Plan for the E&P area Petrobras? 2009-2013 Business Plan calls for for 2009-2013 foresees investments of the $47.8 billion in investments in the Downstream order of $92 billion in Brazil alone. This amount Area, which includes the refining, is $26.9 billion above the total the previous transportation, trade, petrochemicals, and plan (2008/2012). With these investments, the fertilizer activities. company estimates it will boost domestic oil production to 2,680,000 barrels per day (bpd) There are opportunities for the construction os in 2013. new refineries. Investments were earmarked to build the Abreu e Lima (state of Pernambuco), According to Petrobras, of the total earmarked Clara Camarão (state of Rio Grande do Norte), to be invested in E&P, some $29 billion will be the Premium I (state of Maranhão) and the allocated to the Santos and Campos basin pre- Premium II (state of Ceará) refineries, the Rio salt projects alone. Petrobras wants to produce de Janeiro Petrochemical Complex (COMPERJ) 219,000 bpd in the pre-salt by 2013, and and the SUAPE Petrochemical Complex, in 1,800,000 bpd by 2020, including the addition to a new nitrogenated fertilizer unit. production both of Petrobras and of its partners. This will practically double the The Clara Camarão Refinery is scheduled to Company?s current daily production in Brazil. start operating in 2010, Abreu e Lima in 2011, the Comperj in 2012, and, finally, the first There will be a massive drilling activity. Most phases of the Premium refineries are expected significant drilling related opportunities are to go online in 2013. likely to be offshore, in varying water depths. UK Trade & Investment Sector briefing: Oil and Gas opportunities in Brazil The investments also encompass product Only in the first phase, the Ship Programme conversion and quality improvements at the will generate more than 20,000 direct jobs. In existing refineries, the highlight of which is the addition, the Brazilian naval industry, stagnant Company?s goal to produce diesel fuel and since the 80?s, is being reactivated. In the gasoline with lower sulfur contents, over and same way, there are opportunities for suppliers beyond investments in pipelines and terminals. of goods and services for shipbuilding, iron, steel and metallurgical sectors, which will According to Petrobras, the processed oil load supply inputs for the construction of the is expected to surge to 2.270 million barrels ordered ships. per day in 2013, and to 3.012 million barrels per day in 2020, up from the current 1.791 The 26 new ships provided in the first phase million barrels, an average annual growth of will have capacity to transport about 2,7 million 4.8%. tons of gross deadweight (TPB). Ten Suezmax, five Aframax, four Panamax, four Products Gas and Energy ships and three Gas (liquefied petroleum gas - GLP) tankers will be constructed. Investments in the order of $10.6 billion have been foreseen for Petrobras? Gas & Energy area General in the Company?s 2009-2013 Business Plan. Of the total planned for investment between 2009 There will be a further increase in the demand and 2013, $5.2 billion will be in new projects, for offshore support services, including bases, while $5.4 billion in projects already in boats and helicopters, and there may be progress. opportunity for shared services provided by a third party. According to Petrobras, $8.2 billion will be allocated to completing the Southern and There will also be opportunities in supporting Northeastern network expansion construction and maintaining production facilities, onshore work and to building new liquefied natural gas and offshore. The onshore market is probably (LNG) terminals, while $2.4 billion will be well supported, but there may be opportunities invested in building thermoelectric plants and in the areas of automation, predictive and small hydroelectric plants (SHPs) and in preventative maintenance techniques, pipeline participation in new electric energy businesses, inspection and repair. including eolian plants. With the increased activity levels and the Transport increased numbers of operators, there are likely to be considerable demands for skills Transpetro (Petrobras logistic Company) is training, conversion and upgrading. These are responsible for a network of invisible roads likely to offer opportunities for both on site and formed by more than 11 thousand km of distance learning packages. pipelines - among oil and gas pipelines - which interconnect all Brazilian regions and supply If you have any questions on the opportunities the most remote parts of the Country. above, contact the UKTI Brazil Oil and Gas contacts named in this report. Business The greatest shipowner of Latin America, opportunities aimed specifically at UK Transpetro, is renewing its fleet. The Fleet companies are added daily to UKTI?s website. Modernization and Expansion Program These leads are sourced by our staff overseas (Promef) represents an impulse for the in British Embassies, High Commissions and industry of great size ships in Brazil. The 49 Consulates, across all sectors and in over 100 new oil tankers will assure greater autonomy markets. and control in the transport of Petrobras production and can be serve as basis for the You can be alerted to Brazil Oil and Gas rebirth of the Brazilian naval industry. opportunities on a regular basis by registering on the UKTI website. More on UKTI?s business opportunities service UK Trade & Investment Sector briefing: Oil and Gas opportunities in Brazil Major events and activities UKTI contacts NavalShore 2010 Steve Graham Conference and Exhibition Consul Commercial - Head of UKTI Team, Rio Contact: UKTI Oil and Gas Sector Group in de Janeiro Brazil Tel: (+55 21) 2555 9612 Email: renato.cordeiro@fco.gov.uk Email: steve.graham@fco.gov.uk August 2010 Renato Cordeiro UK Outward Mission to Rio Oil and Gas Sector Manager ? Oil & Gas Exibition and Conference Tel: (+55 21) 2555 9610 Contact: UKTI Oil and Gas sector Email: renato.cordeiro@fco.gov.uk Email: renato.cordeiro@fco.gov.uk September 2010 Flavia Silva de Castro Business Development Manager ? Oil & Gas UK Outward Mission to the UKTI Brazil-UK Tel: (+55 21) 2555 9610 Energy Seminar Email: flavia.silva@fco.gov.uk Contact: Jim Feeney Email: jim.feeney@ukti.gsi.gov.uk Licia Rocha November/December 2010 Assistant Sector Manager - Oil & Gas Tel: (+55 21) 2555 9614 Brasil Offshore 2011 Email: licia.rocha@fco.gov.uk Conference and Exhibition Contact: UKTI Oil and Gas Sector Group in Brazil Email: renato.cordeiro@fco.gov.uk June 2011 Offshore Technology Conference Brazil 2011 - OTCB Conference and Exhibition Contact: UKTI Oil and Gas Sector Group in Brazil Email: renato.cordeiro@fco.gov.uk October 2011 Find full details of all Brazil Oil & Gas events on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis. UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events. UK Trade & Investment Sector briefing: Oil and Gas opportunities in Brazil Next steps - How UKTI can help British companies wishing to develop their This work is available via our Overseas Market business in the Brazilian market are advised to Introduction Service (OMIS) a chargeable undertake as much market research and service which assists British-based companies planning as possible in the UK. UKTI?s team in wishing to enter or expand their business in Brazil, with its wide local knowledge and overseas markets. experience, can provide a range of services to British-based companies wishing to grow their To find out more about commissioning this business in the Brazilian market. work, or accessing other UKTI services and specialist advice, please visit the UKTI website This can include: to find contact details for your local UKTI ? Provision of market information office. ? Validated lists of agents/distributors ? Key market players or potential customers in the Brazilian market ? Establishment of interest of such contacts in working with you ? Arranging appointments ? Organise seminars or other events for you to meet contacts and promote your company in the Brazilian market Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Oil and Gas opportunities in Brazil
Posted: 22 September 2010

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