The past year has been a challenging one for the oil and gas industry globally, due to the COVID-19 pandemic and the fall in oil prices, but there are hopes of better times to come. One of the countries leading the case for greater optimism is Brazil.
Brazil’s oil and gas industry was historically dominated by state operator Petrobras, but it started opening up to international companies a few years ago. Many operators today believe Brazil is a promising market and are investing in oil exploration offshore.
This feeling of growing optimism is evident in published comments from various oil and gas company CEOs. There is a definite sense that this could be a decade of significant growth for Brazil’s energy industry, including the oil and gas sector.
Brazil’s vast pre-salt fields are enjoying an increase in production, while accelerated merger and acquisition activity following asset sales by Petrobras and the introduction of new, international players into the Brazilian market are generating considerable excitement.
The Brazilian oil industry has changed significantly over the years. As field depths have become deeper and deeper, the demands for materials with a higher resistance to corrosion, pressure and temperature have grown. Many of the international companies entering Brazil today have already dealt with such challenges elsewhere in the world. They are bringing valuable experience of operating deepwater oil fields, and are adding to the demands for more robust and resistant product materials to meet the needs of Brazil’s deepwater developments.
Such demands offer great opportunities to maximize business for companies in Brazil’s local supply chain that can combine quick delivery times with quality products, services and technical support.
For example, when it comes to control lines for Brazil, having local production units that meet international standards can represent a real benefit. It means international companies operating in Brazil can expect to receive high-quality materials direct to their facilities on the requested date, without having to worry about the hurdles of handling logistics or importation. They can follow the manufacture of materials easily and avoid the unnecessary costs of delays through delivery holds ups.
Supporting the production of quality materials with internationally recognized high class technical and commercial service delivery is important. It can further generate customer confidence and enhance peace of mind that the offering available from the Brazilian supply chain meets, and may exceed, that found in other parts of the world.
Learn more about our oil and gas support in Brazil.
Fernanda Freitas, Applications Engineer, Sandvik