About this event
Why Rio Oil & Gas?
The upcoming edition of Rio Oil & Gas, Latin America’s leading O&G event, is particularly important as key projects by Petrobras and IOCs in the country are getting traction. The Brazilian NOC has recently awarded major contracts for the Mero 2 and Buzios 5 FPSOs to SBM Offshore and Modec, respectively, while a decision is imminent regarding the Parque das Baleias and Marlim floating production units. Major contracts are expected to be awarded in the coming months, as the Brazilian company forges ahead with its US84.1 billion investment plan for 2019-23.
Brazil’s oil and gas opportunities are no longer limited to Petrobras’ pre-salt plans. Oil majors such as Equinor, Shell and Total are actively engaged in field development projects, with contracting activity already underway. Equinor is poised to install Brazil’s largest FPSO – with a capacity of 220,000b/d – at the Carcará field, while Shell has ambitious plans for its Gato do Mato pre-salt field in the Santos basin.
Why Brazil?
Projects in Brazil are getting off the drawing board- It’s not all talk with Petrobras! They’re one of the few operators worldwide who are actually signing projects off and at quite a rate too. Here’s the proof: Modec was awarded the Buzios V FPSO in March, while SBM Offshore got the Mero 2 FPSO in June. Tenders are ongoing for the Marlim I and II modules and the Parque das Baleias units, with Modec and Yinson expected to nab contracts. The Brazilian NOC will soon launch tenders for the Itapu, Mero 3 and Sergipe-Alagoas FPSOs. In the midstream segment, Chinese contractor Kerui is progressing with the construction of the Comperj gas processing plant, which will receive gas produced from pre-salt fields. These are big projects with plenty of work to go around, no matter what service or product you supply.
IOCs are investing in Brazil - Investor confidence is always a good sign, and global players like Equinor, Shell and Total are putting their money where their mouths are and backing a Brazilian upswing, all acquiring blocks with huge acreage in recent bidding rounds, including in some of the world’s most potentially lucrative pre-salt fields. Equinor plans to install a 220,000b/d FPSO – the largest Brazil has ever seen – at the Carcará field, while Shell is making headway at its Gato do Mato pre-salt oil field.
Great OPEX opportunities - It’s not just new build, Petrobras’ massive portfolio (one of the biggest in the O&G world) means once you’re on the books with them there’s always plenty of work to be done. The company’s previous OPEX investment forecast for 2018-22 was US$136.8bn. Key maintenance contracts have been awarded for semi-submersible units in the Campos basin.
Local content has changed - This used to be a big headache for any foreign companies moving to Brazil, however that’s all changed and the country’s oil and gas regulator has pushed down local.