Marine Technology Reporter Blogs - services

The Brazilian Government has decided that any future bidding rounds involving pre-salt blocks will only be launched according to the local industry capability to supply the demand in equipment and services needed by the sector. Local industry has been struggling to keep up with the demand placed by O&G players already involved in pre-salt E&P in Brazil, which are all Petrobras partners, such as BG and others. A study is being done by the Brazilian government to define which is the adequate exploration rhythm for pre-salt development that will allow local industry to keep up with demand realistically. This is an important initiative by the Brazilian government because it will allow sector of local industry to develop technologies and services required by the deepwater pre-salt players.

With the continuous increase of subsea equipment and services companies setting up in Rio de Janeiro, including local companies, The State Government, through its State Office for Local Development (Secretaria Estadual de Desenvolvimento Econômico), has decided to create a subsea center in order to stimulate the sector and bring investments to subsea technology suppliers eyeing the Petrobras orders. Today there are around 35 subsea companies located in Rio (8 offering equipment and 27 offering services). These companies have a workforce of almost 1,200 employees, and the idea behind the subsea center is to attract suppliers and investors for these companies.

New discoveries and the development of deepwater and ultra-deepwater pre-salt increases the demand for subsea equipment and service providers, attracting various international and local companies to compete for subsea contracts for the Brazilian offshore.The deepwater scene is in full swing in Brazil, with major projects being developed by various operators and national operator Petrobras. All these projects require a multitude of subsea equipment and subsea services, which accounted for a steady growth in subsea equipment and service providers from around the world setting shop in Brazil. Companies that have a history of quality equipment and services usually have an advantage when disputing these contracts, but the final product and services price is also a major issue.