BR Petrobras plans to spend $224 billion through 2014 to develop deepsea oil finds. Supplying equipment in a timely fashion will be key to its efforts to nearly double oil production in Brazil by 2020. Brazil's government wants the majority of the cash headed to local companies or local units of foreign multinationals and wants to develop the oil services sector, creating industry that could export goods and services around the world. Thus, gradually, the minimum local content requirements will increase up to 95% in 2017.

Whoever wishes to have a major role in the E&P will have to establish significant local presence, in particular equipment suppliers (topsides, pipes, drilling packages, power packages for offshore units, etc.), who will likely need to build production facilities in Brazil.

The issue is not only to install local manufacturing support, but also pre-sales technical support, a presence close to the shipyards and operators throughout the phase of integration, commissioning and operation, and a very strong and effective after-sale support.

The paper will discuss the overall strategy needed to bring to Brazil the technical and manufacturing expertise to support the rapid growth of the shipbuilding industry and will examine the importance of providing local support to the yards and owners to reduce delays in technical proposal and during the construction phase of vessels.

Honeywell has set up, in addition of its already existing operations, a Marine operation in Rio de Janeiro. This unit includes:

  • Front End Engineering Desing (FEED)

  • Customer Engineering Project Support

  • Technical sales support

  • Installation & Commissioning support.

  • Service Station

  • Local spare part inventory.

Consideration will also be given to a study being run by Honeywell to implement an assembly line in Brazil to minimize logistics costs and delivery times.

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