Demand for goods and services in the oil and gas sector will be well felt in the first half of 2020

December 10, 2019

In this Tuesday’s edition of the Perspectives 2020 project, we invited the current president of the Brazilian Association of Petroleum Services Companies (ABESPetro), Claudio Makarovsky, to give his impressions about 2020. Despite the challenges still in place, Makarovsky sees that 2019 was better than previous years, as new FPSOs were contracted, even without requiring local content. “They will require local services (rigs, boats and support bases, supplies and labor) when in operation,” he said. But, in the executive’s view, it is not necessary to wait for these units to come into operation for the market to start seeing favorable winds. “Demand for goods and services will be well felt in the first half [2020] and the other demands in the second half,” he predicts. He also suggests that Brazil adopt a policy to promote exports.

How did you see the sector in 2019?

It was the best of all the previous ones, I think since 2010, when we hit the peak of demand and then the downward curve. And 2020 will be even better.

We saw the hiring of the Buzios V and Mero 2 FPSOs – both with local content and modules and skids already under construction in Brazil – as well as Marlim I & II – even without requiring local content. They will require local services (rigs, boats and support bases, supplies and labor) when in operation.

Auctions took place within predictability, which guarantees international credibility. In addition, services such as the Carcará well drilling and construction campaign make other sectors in the chain start demanding services and offers.

What is the expectation for 2020?

Demand for goods and services will be well felt in the first half and the other links in the second half. Initiatives in mature fields in the Campos Basin – boosted by royalty reduction – decommissioning of 34 end-of-life platforms, Reate 2020 onshore, new Gas Law, new Petrobras plan – a bit more conservative , giving it more credibility – and divestments (Mature Fields, Refineries, Fertilizer Plants) are expected to drive our industry in 2020 and beyond.

What would you suggest to make your business segment more active?

Give up the idea of ​​coming back with local content regulation by law. Each contract is a contract, so it must be left to agency regulation.

The ANP also takes the lead in regulating Pedefor. We must have a government policy to foster exports, generate volume, as we are formally missing out on what is happening in Latin America. Guyana is hiring its fourth FPSO with Brazil-made SURF – on its own initiative. Coordination would do very well and leverage the other supplier links.

Source: Petronotícia

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