Market experience and industry knowledge means success for Sandvik in Brazil

What’s your view of the Brazilian market? Come and tell us at Rio Oil & Gas stand J36, pavilion 4, September 24 to 27. We’ll be featuring our range of corrosion-resistant materials and technology including control lines, umbilical tubing, OCTG, and more on our booth at Rio Oil & Gas.

After a challenging few years, there are clear signs the Brazilian oil and gas industry is returning to strength.

The successful outcome of recent licensing rounds, coupled with governmental reforms in areas such as local content and tax rules, are encouraging increased foreign investment and generating a greater confidence in the South American superpower.

Optimism in the local market, enhanced by a global confidence in the return to growth in the international deepwater industry, means when it comes to oil and gas, Brazil is very much in the game.

At Sandvik, we expect to see market growth over the next few years.

Our operations in Brazil have mirrored the wider industry’s recent resurgence, including the investment in a brand new service center to produce control lines and chemical injection lines, as well as encapsulate umbilical tubing with full local content. However, our success today is based on our long-term involvement, investment and experience in the country that goes back almost 70 years.

Vital part of your team

We entered the Brazilian market in 1949 with a sales unit for drilling bits for mining and construction. Our first production unit was built in 1962 in Sao Paulo, where we established our current headquarters.

In line with our strategy to better serve customers with a local base, we opened our South American hub and oil and gas production unit in Rio de Janeiro in 2015, with a focus on control lines.

And despite challenges faced by the global oil and gas industry in recent years, we’ve maintained our success in securing orders and long-term contracts with key customers. In fact, we’ve seen continuous growth since our production facility opened and we expect that to continue.

Sandvik is the primary supplier of control lines for the Brazilian national oil company Petrobras, as well as for several major service companies.

We’ve also exported our materials from Brazil to many countries in the world, including the U.S.A., Norway, Nigeria, Saudi Arabia, the UAE, India and Malaysia.

As a result of our success, we’re proud to say we’ve supplied over a million meters of flatpacks to the oil and gas industry.

Catalyzer of your growth

At our production facilities in Brazil, we can encapsulate, flush and fill and pressure test control lines and umbilical tubes, supplying products with 100% local content according to national petroleum agency (ANP) regulations. This means our clients comply with local content rules and can potentially generate cost benefits in their operations.

Pioneering solutions for you

Sandvik is recognized globally as a company with expertise in stainless steel and special alloys development. We invest four percent of our revenue in research and development and we have one of the most advanced material labs in the world, located in Sandviken, Sweden.

Our super-duplex Sandvik SAF 2507® stainless steel is ideal for control lines applications, particularly in deepwater regions like Brazil, as it has both high mechanical properties and corrosion resistance without the need for expensive nickel alloy. These benefits make Sandvik SAF 2507® the perfect material for use in areas of high chlorine and carbon dioxide such as Brazil’s pre-salt reservoirs.

I’ll be at the booth during the week of Rio Oil and Gas so please come along. I’d like to hear what you think about the future of the Brazil oil and gas industry. And I’d like to discuss with you how our experience of the local market could help solve your challenges in Brazil. E-mail me at alan.souza@sandvik.com at any time to arrange a meeting.

By Alan Souza, Regional Sales Manager, Americas.

Rio Oil and Gas
September 24-27
Rio de Janeiro, Brazil
Stand J36, pavilion 4