Oil and Gas Best Sales Prospects and Highlights

An Expert's View about Oil And Gas Field Machinery in Brazil

Posted on: 29 Nov 2012

Petrobras’ project portfolio includes 980 projects that will require investments of USD$236.5 billion between 2012 to 2016. Of these projects, approximately 833 projects valued at USD$208.7 billion have already been approved and are being implemented. The remaining 147 projects, valued at USD$28 billion are still being reviewed by Petrobras to confirm their viability. In a recent presentation, made during an oil and gas industry association event, Petrobras stressed the need to get lower bid prices and for the stricter fulfillment of delivery requirements in order to meet the goals and objectives of their ambitious business plan. Petrobras is reviewing all their projects in order to implement a cost reduction plan. A Petrobras spokesperson stated that Petrobras supports local content (LC) and will increase its LC requirements even in situations where they are not obliged to do so by contractual clauses. However, Petrobras will continue to closely monitor price levels and delivery time issues regarding their domestic suppliers. Petrobras’ LC Department will prepare reports listing LC requirements on a project-by-project basis and will also report actual fulfilled LC requirements. The spokesperson highlighted the fact that Petrobras holds the largest number of offshore oil projects in the world and the sheer size of their ongoing and upcoming projects are attracting many foreign equipment and service suppliers that are opening up or expanding their facilities in Brazil. It's Petrobras’ goal to establish long-term business relationships with its suppliers as long as they have competitive prices and meet their delivery commitments.

In conversations with trade contacts, CS Rio learned that several of these major (multinational) original equipment manufacturers (OEM’s) have, in turn, been trying to attract their supply chain companies to establish facilities in Brazil. However, in many cases, due to the speed and number of oil and gas projects in Brazil, a large percentage of certain components, auxiliary equipment, parts, and peripherals will continue to be imported in order to meet delivery times and technological requirements. At the same time, the following broad list of equipment and services can be considered best sales prospects for Petrobras, given the company’s high demand:

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Posted: 29 November 2012