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Interest has been growing in Brazil when it comes to oil and gas development. Presalt reserves are helping to lure companies to the South American country.
In 1997, when the Brazilian government ended Petrobras’ monopoly on operations, international operating companies began looking at Brazil’s offshore as a potential area of investment. With the discovery of presalt reserves in 2007, the world view of Brazil’s hydrocarbon potential changed dramatically. Before the presalt discoveries, Brazil’s total proved and probable reserves were estimated at 20 Bbbl. Conservative estimates for total recoverable presalt oil adds 50 Bbbl to that number.
Brazil’s bright future as a hydrocarbons province has placed it on center stage, and many more companies now are interested in setting up local operations. But opening an office and working in Brazil requires considerable planning, an understanding of the local requirements, and a cooperative relationship with domestic entities.
Since 2003, every foreign company operating in Brazil, including operators, drilling contractors, and service and supply companies, is required by law to demonstrate through a third-party certification that local content requirements have been met. Adeptly navigating these requirements is the difference between failure and success; so it is vitally important to manage this process well.
ABS is one of the few companies in Brazil accredited by the national petroleum agency, Agência Nacional do Petróleo (ANP), to provide certification for all areas of service, including such offerings as basic engineering, geology and geophysics, drilling and completions, pumps, compression units, water treatment units, and subsea equipment. With more than 33% of the market share, ABS has awarded more than 3,600 certifications since 2009 and continues to play a critical role in one of the world’s most dynamic growth areas.
Brazil’s production stood at 1.94 MMb/d in July 2012, and Petrobras has announced plans to produce 3.95 MMb/d by 2020. If this optimistic prediction is valid, many more companies will find it valuable to have a presence in Brazil.