In the recent Rystad Energy/ NORWEP Annual Offshore Market Report, Brazil was ranked as the most extensive offshore Oil & Gas market in the World in the next four years. A new bidding round for activities this sector is just completed in Brazil, award of a contract for a new FPSO and several ongoing tenders for maintenance of fields in late production in the Campos Basin. These facts are turning around the activities and expectations and opportunities in the country.
NORWEP, an independent non-profit foundation which promotes Norwegian Energy capabilities in international markets, together with NHO and BNCC, organized a meeting to present to the members of the three organizations the potential and perspectives of the Oil & Gas market in Brazil towards 2021.
Mr. Gulbran Wangen, the NORWEP Regional Director for Brazil, presented the assessment of Brazilian market towards 2021. Mr. Wangen explained that today Petrobrás still being the dominating operator in Brazil, followed by Statoil and Shell. But with the taking over operatorship of a substantial part of the Carcará, new opportunities can be expected by suppliers and contractors. “The development of Libra, Atapu, and Buzios, in addition to Statoil’s Carcará, is estimated to drive most of the growth towards 2021”, said Mr. Wangen.
He has also introduced the upcoming projects in subsea market, operational services, transport and logistics, drilling and services, seismic and installation potential. The progress assessment of Brazilian Priority Projects from 2018 to 2021 was presented, as well the bidding rounds already scheduled for the next years to come.
Another interesting point that was called the attention of the audience is that now, differently than use to be, international cooperators are recognizing the importance of finding common solutions in the way to the future. This aspect was illustrated by a picture of panel where Statoil, Exxon, Aker Solutions and Subsea 7 are discussing collaborations.
Moreover, regulatory framework improvements, such as Local Content review have also positively impact on business. Mr. Gulbrand Wangen closed his presentation introducing to the audience the possible candidates for the Brazilian presidential election in 2018 and opened the floor to questions and discussions.
Although political instability still being a significant risk for Norwegian investment, the excellent business prospects are the main reason to 179 Norwegian companies be active in Brazil, with a remarkable increase in investments. Norwegian investments in the oil & gas, offshore and maritime sectors in 2016 reached the highest levels ever recorded, according to the 2017 Edition of the report “Norwegian Investments in Brazil.” (Read the full report here).