“Two great energy nations”

Deputy minister Per Rune Henriksen is spending 5 days in Rio de Janeiro, 2 days more than last year. A good sign, according to Innovation Norway director Helle Moen.

 

 

 

 

 

 

 

 

 

 

 

 

“Brazil and Norway are both great energy nations with a common objective of managing our resources to the benefit of the society as a whole”, deputy minister of petroleum and energy, Per Rune Henriksen, said when he opened the Norwegian pavilion at the Rio Oil&Gas expo on Monday 17th.

 

The Norwegian pavilion is among the biggest international pavilions at the exhibition, which is currently considered the most important oil and gas event in Latin America, attracting industry from all over the world. More than 50.000 people were expected to visit the Riocentro convention center during the exhibition this year.

 

Deputy minister of petroleum and energy, Mr. Per Rune Henriksen formally opened the Norwegian pavilion Monday afternoon, and the opening was followed by a crowded happy hour.

 

“Norway and Brazil are major energy nations. We have abundant oil, gas and hydropower resources. Both countries have an objective to manage the resources to the benefit of the society as a whole. Prudent management of natural resources is in my view to maximize the extraction of resources and minimize the environmental footprint”, Mr. Henriksen said.

 

“40 years of challenges on the Norwegian continental shelf has created an innovative petroleum industry, and I know you have a lot to offer to the Brazilian market, Mr. Henriksen said, addressing the many Norwegian company representatives present.

Bigger than in 2010

He also emphasized the Brazilian know-how on deep sea drilling, and solicited that the Norwegian companies present use the exhibition to “capitalize on the opportunities to present your great skills”.

 

“Brazil and Norway’s competences are highly compatible and this is the basis for the important partnership that has evolved between Norwegian suppliers and especially Petrobras”. Mr. Henriksen said.

 

The pavilion is hosted by Innovation Norway, and occupies a 574 m2 area. 35 companies are exhibiting at the pavilion. 17 of these companies are exhibiting for the very first time. In addition, several Norwegian companies have their own separate stands outside the pavilion. In 2010, more than 60 Norwegian companies were listed as exhibitors, and a total of 1300 exhibitors from 51 countries were present.

 

Need for good financing solutions

Earlier Monday, the deputy minister opened a seminar on opportunities and cooperation financing the oil, gas and shipping sectors. The seminar was organized by the Norwegian embassy, Innovation Norway, BNDES, DNB, Intsok and the NBCC, and about 100 people  were present.

 

Representatives from the BNDES, Petrobras, Innovation Norway, GIEK, Export Credit Norway and DNB gave their presentations and insights during the seminar.

 

“In 2011, the international turnover for the Norwegian based supply and service industry was of USD 25 billion, and that is a significant global market share. In Brazil, Petrobras has qualified two Norwegian companies as suppliers, but in order to secure contracts, they all depend on good financing solutions and well functioning financial institutions. Brazil is an important and growing market for Norwegian suppliers and finding the right financing solutions is crucial”, Mr. Henriksen said in the opening statement at the seminar. Later he met with BNDES president Luciano Coutinho.

 

4 platforms a year

Maria Izabel Ramos from investor relations at Petrobras. Photos by Runa Hestmann Tierno

 

 

 

 

 

 

 

 

 

 

 

 

 

Maria Izabel Ramos from investor relations at Petrobras talked about the company’s ambitious investment plans.

 

 

“Petrobras expects to install 4 platforms a year up to 2016. It looks challenging, but offshore projects are something we are good at”, she said.

 

“When Petrobras realized that funding was a problem for our suppliers, we created the Progredir program, an internet portal where we put all the information on contracts with suppliers, their historic background and evaluations. The suppliers can ask for funding online, and all the banks that are part of the program receive the application and can make a financing offer to the supplier. The program started in 2011, and has now been extended to suppliers of Petrobras suppliers. So far we have financed 3,3 billion reais to our suppliers and given 344 companies access to funding”, Maria Izabel Ramos explained.

 

Arne Christian Haukeland, senior vice president and head of the Brazil representative office of DNB, was given the challenging task of summing up at the end of the seminar.

 

DNB has been active in the Brazilian market in since 1968 and has established a broad network with key institutions such as BNDES, Banco do Brasil, large Brazilian private banks, Petrobras, as well as the local business community

 

“The optimal financing solution is to use the BNDES to finance the local content share of the projects and use the Norwegian institutions like GIEK and Export Credit Norway for financing the Norwegian content. If needed utilize commercial bank capacity, he concluded.

 

 Foreign content

Intsok gave its insights on the oil & gas and offshore market in Brazil during a seminar on September 19th, and both Carlos Camerini, superintendent at ONIP, the national organization for the Brazilian petroleum industry, and CEO of Sete Brasil, Jõao Carlos Ferraz, emphasized the plentiful opportunities for Norwegian suppliers despite the Brazilian local content regime. The demand for goods and services by 2020 will be of an estimated total value of USD 400 billion.

 

Sete Brasil, an investment company created in 2010 to manage assets portfolios, mainly of drilling rigs, have 31 rigs contracted, and 6 of them are being built by the Norwegian companies Odfjell Drilling and Seadrill

 

“On the drilling packages 50-80 percent will be foreign content, and on the marine packages, 40-60 percent will be foreign. Norway will be among the main sources”. Mr. Ferraz said.

 

Carlos Camerini reminded that there are only 34 offshore oil fields in production or development in Brazil, and 314 more exploratory areas.

 

“The future in this industry is big”, Mr. Camerini says.

 

By Runa Hestmann Tierno, NBCC journalist

(runa.tierno@nbcc.com.br)