Modec sees Brazil as the best market to grow and targets big contracts

JANUARY 14, 2020

(Reuters) – With an eye on the growth potential of Brazil’s oil industry with the pre-salt, Japanese giant Modec will seek to win at least one or two major platform charter contracts a year in the country, where it bets on technological development to stand out from international rivals.

In an interview with Reuters, Modec Group’s digital director and vice president of operations in Latin America and Ghana, Soichi Ide, pointed out that the concession of important assets to oil giants in recent years has ranked Brazil as the best place in the world for the company to grow.

In the projections of the platform supplier and operator, Petrobras and other multinational oil companies are expected to demand 20-30 platforms in the next five years.

“We are very focused on Brazil,” said Ide enthusiastically at his office in Rio de Janeiro.

“I know other markets in the North Sea, Africa, Asia … There are no other places like Brazil where we can really keep producing new projects on this basis, four or five projects every year. This is not happening in any market in the world, only in Brazil. ”

As part of its growth plan, the company plans to hire 800 employees in Brazil in 2020, bringing the number of local employees by 35%. According to the executive, about 90% of Japanese employees in the country are Brazilian.

He said the company looks at every opportunity for new contracts, but believes it can be more efficient at longer and larger contracts. And with the opening of the market, Modec is ready to add knowledge to the new operators in the country, he added.

Last year, Modec opened a new base of operations in Macaé (RJ) in response to the increased operational demand of its vessels in the Campos Basin and business expansion projections for the coming years.

Present in Brazil since 2003, Modec is already responsible for 35% of Brazilian pre-salt production, with 11 oil platforms operating in the country and four under construction.

Given the ongoing business and the prospect of growth, Ide stated that Modec decided to invest in technology to expand results and contribute to regional development.

TECHNOLOGICAL HIGHLIGHT

 As a result of this effort, Modec saw the inclusion of one of its platforms on a select list of the World Economic Forum, the so-called “Global Lighthouse Network”, with facilities that have been able to achieve the best global results in the deployment of new technologies.

The platform included was the FPSO City of Campos dos Goytacazes, which produces at the Tartaruga Verde field in the Campos Basin, operated by Petrobras.

This is the first time that an industrial facility located in Latin America has been included in the “headlamp network” – recognition is also unheard of among offshore units and includes for the first time a unit operated by a Japanese company.

“Considering that Brazil is growing, we have to be efficient, productive. Brazil has a lot of potential and we want to unlock it, ”said Ide, stressing that the country is already very developed in the oil and gas sector.

Ide also pointed out that the technological development recognized by the Economic Forum was all carried out by the company in Brazil.

Among Modec’s technology initiatives, Ide highlighted digitization processes and digital tools, which he said allowed a 65% reduction in downtime on the platform operating in Tartaruga Verde.

“We have a large amount of data from our operations in Brazil and with the help of digital tools we can anticipate problems and ensure the safe and stable operation of our fleet,” he said, noting that each platform has over 10,000 sensors. installed.

Modec’s goal, he added, is to be a reference in the process of digital transformation of the oil and gas industry amid the industry’s energy transition process towards more sustainable operations.

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