Siemens Eyeing Brazilian O&G

Siemens has recently announced that it plans to invest around $150 million in Brazil, of this sum $50 million alone will be invested in a new technology in Rio de Janeiro. The new technology research center will be located within the UFRJ (Federal University of Rio de Janeiro) technology park at Fundão Island, where Siemens plans to concentrate all of its research and development activities.

The UFRJ Technology Park is already a hub for research centers related to the O&G industry, harboring research centers belonging to the Brazilian national operator Petrobras and also to major O&G industry service providers such as Schlumberger, Baker Hughes and Halliburton.

According to Siemens executives, the company is aiming at being closer to its energy industry clients and sees Brazil as the new frontier for energy business. In order to adapt to Brazilian laws, Siemens is already making a big effort to increase the national content in its manufacturing plants in Brazil, they also hope that the increase in national content will help them in securing orders for equipment to be used in the development of Brazil´s pre-salt fields.

The Siemens Technology Center will occupy an area of 4 thousand square meters and employ around 800 engineers and technicians. Although the center´s main target will be in developing offshore and subsea technology, it will also be dedicated to research in different forms of renewable energy and software development in cooperation with various UFRJ technology laboratories.

Two other international companies have also secured locations at the UFRJ Technology Park, which will now have its 350 thousand square meter area fully occupied. These companies are the British BG Group, specialized in segments of the O&G industry and U.S based EMC which specializes in information technology.

This shows how major international companies are certain that the O&G industry growth in Brazil is no fluke and that they expect this growth and development to go on for decades bringing Brazil into the mainstream O&G market as a top player. The amount of foreign investments pouring in to Brazil also hint at the belief these companies have that the Brazilian economy and government is stable enough to be considered as low risk venture  for companies involved it the energy and infrastructure segments.

Claudio Paschoa