August 30, 2017
By Davi de Souza (davi@petronoticias.com.br)
Suez announced this week a new contract with Petrobras to supply seven water desalination units to 11 platforms. In addition to making the equipment available, the company will also provide maintenance services. With this important new business, the group, present in several countries, prepares the next steps of its operation in Brazil.
Suez’s commercial and executive director, Sylvio Andraus, explains that the purpose is to use this contract as a reference to attract new oil companies. “What I see in the medium and long term, something around 5 years, is that there is an expansion of the market from the moment there is a need to have smaller treatment units, in a rental system,” he said. Andraus also explained that Suez will wait a bit longer for the production of new desalination plants. When you see that the market offers demand, the company will be able to evaluate the possibility of having more equipment.
When will the contract signed with Petrobras start to run?
This contract will last for three years and will serve 11 platforms of the Petrobras Operations Unit Rio de Janeiro. The contract is for the leasing of water desalination plants for human consumption on the platforms. This agreement is already signed and begins to count as of 120 days of signing a service authorization. We will offer up to seven units, and we will start with two rented plants. Probably at the beginning of next year we will have two units already on the platforms. Petrobras has already formalized these two units, out of the seven possible ones.
Is this the company’s first offshore platform service contract worldwide?
Yes, this is the first. This contract is a pioneer for us. In addition to renting the platforms, we will also provide maintenance assistance. Visits will be made to the platforms to verify that the units are functioning properly, performing preventive or corrective maintenance if necessary.
What other company projects within the oil and gas market?
Suez is a company that has provided services to Petrobras in the refining area. And we also have contracts with players that supply supplies to platforms such as Keppel and EBR. In offshore, we got this first contract with Petrobrás.
What are the perspectives within this sector?
In the medium and long term, the company intends to leverage its performance in terms of services. Not only focusing on Petrobrás, but also on other operators. All these platforms need drinking water. So, what I see in the medium and long term, something around 5 years, is that there is an expansion of the market from the moment there is a need to have smaller units of treatment, in rent. This modality has the advantage of having a vendor doing maintenance. With this, our clients can have a specialized company providing the service, without having to buy the asset.
How are the company’s business in Brazil?
Our performance in the Brazilian oil and gas industry is in offshore and in the upstream. Brazil has the need to explore the oil that is in the pre-salt. The production of the pre-salt is increasingly important. With these new auctions, new platforms will come. The Brazilian market is strong offshore and the Suez group is prepared to serve this segment. We have expertise for water treatment used for well injection and also for platform consumption.
How does the company intend to expand its business within Brazil?
First, the company entered this service for Petrobrás. And the idea is to continue to provide treatment plants and expand participation in services. That is how we see organic growth of our company. We want to expand our operations to Petrobrás and other operators. This new contract with the state is a reference for other companies to see our solutions.
Will the company produce new desalination units?
Let’s wait for Petrobras’s reaction first. We will only expand once we have a consolidated market. For now, we will work on this contract with Petrobrás. We are prepared for these seven units. With market development and consolidation, there we will understand a little better the need to expand the manufacturing of other units.
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