Oil companies target the supply industry in Brazil

The need to rebuild and revitalize the supply chain of goods and services for the oil sector in Brazil dominated the debates of an event promoted by IBP.

The president of BP in Brazil, Adriano Bastos, stressed the importance of rebuilding the supply chain in Brazil. According to him, with the oil crisis and the country, many segments disappeared in the country – he did not mention any specifically – besides the country having lost a lot of skilled labor abroad.

For Statoil’s vice president of Supply Chain in Brazil, Mauro Fernandes, a particular segment, although it has not disappeared, needs attention. According to him, the SURF area (subsea, umbilicals, risers and flowlines), although it has local competitive production in Brazil, is surviving with small margins and low utilization of factories. “It’s from this segment that I’m going to get most of the required local content three years from now when I go to the market to buy. If this sector disappears in Brazil, we will have a problem, “he warned.

In addition to the SURF segment, Fernandes said it is necessary to select another two to three key sectors in the supply chain that can be globally competitive to prioritize in the country. “You have a large scale of projects, so you can choose some sectors and prioritize,” he said.

The executive is still seeing changes in the contracting models of oil companies. He cited as an example support vessels and air transport. In the future, he believes, instead of hiring air transport, oil companies will rent space on aircraft. The same would apply to the support vessels, citing as an example a (still) fictional Uber of the support vessel.

IBP’s secretary general, Milton Costa, added that the transformation the oil industry has been going through in recent years will transform it from a capex industry – focused on large investments – to one of opex – focused on spending on hiring services.

Gas

Mauro Fernandes also spoke about the importance of creating a robust gas market in Brazil for the survival of the oil industry. He also warned forecasts of peak demand for liquids in a few decades, which creates a challenge of how to monetize Brazil’s reserves.

 

Source: Portos e Navios Magazine