English 
Spanish 
5 min read
0 comments
Shipyards and unions pressure Petrobras for more local content in its oil platforms
Brazilian shipyards are demanding that Petrobras increase the share of national content to 40% in contracts for the construction and chartering of FPSO platforms. National Union of the Shipbuilding and Offshore Repair Industry (Sinaval) argues that this measure is essential to strengthen the naval industry and the Brazilian supply chain. The current requirement of 20% is not enough to generate the economic and employment impact expected by the sector.
Petrobras, however, is still resisting the adoption of higher percentages, preferring to maintain the current standard, which has generated debates among different entities in the oil and gas sector.
Pressure from shipyards for higher local content
The request by the shipyards, represented by Sinaval, aims to increase local content to 40% in Petrobras' upcoming tenders. The union's main argument is that the measure, in addition to strengthening the national shipbuilding industry, will stimulate the local economy, generating jobs and promoting the development of the machinery and equipment production chain.
- Argentine natural gas: A risk for hydrogen in Brazil amid shortages and the future of the natural gas market?
- Petrobras announces MEGA FPSO project in Sergipe: Discover how the country's LARGEST oil company will meet the growing global energy demand
- Galp and Petrobras compete for share in DISCOVERY of 10 billion barrels of oil
- 5.111 km and 38 billion cubic meters: China and Russia inaugurate one of the largest gas pipelines on the planet!
In the tender for the P-86 platform, which will be installed in the Campos Basin, Petrobras established a local content of 20%, which was considered an improvement over previous contracts, which did not require the hiring of national suppliers. However, Sinaval believes that, with dialogue between the parties and consultation with Brazilian suppliers, this percentage can be increased.
Adoption of Brazilian modules: a way to increase local content
Another point raised by the shipyards is the construction of platform modules in Brazil. Petrobras is studying the possibility of manufacturing seven P-86 modules in Brazil, which would increase local content and bring more dynamism to the shipbuilding industry. In addition, Sinaval argues that the integration and commissioning activities of the platforms, which traditionally take place in Brazil, should also be considered in the calculation of local content.
Key benefits of increasing local content:
- Job generation in Brazil
- Higher tax collection
- Reducing dependence on foreign suppliers
- Development of the national equipment and services industry
Own platform acquisition model gains strength
One point of support for Brazilian shipyards is Petrobras' decision to purchase its own platforms, such as the P-86. In recent years, the state-owned company has been contracting platforms through chartering, a model in which the platform is rented for a period of time. However, difficulties with this model have led Petrobras to reconsider its strategies.
The Build, Operate, Transfer (BOT) model is being evaluated by the state-owned company. In this format, the platform is built by a supplier, operated for a period of five to seven years and then transferred to Petrobras. This model is being analyzed for future projects, such as Sergipe Águas Profundas (SEAP).
Advantages of the own platform acquisition model:
- Greater control over the asset
- Long-term cost reduction
- Encouragement of national production
Bonuses instead of penalties: Abespetro's proposal
While Sinaval fights for an increase in local content, Brazilian Association of Petroleum Goods and Services Companies (Abespetro) has a different approach. Abespetro CEO Telmo Ghiorzi suggests that Petrobras offer bonuses to companies that exceed local content targets, rather than penalizing them for not meeting the required percentage.
Abespetro believes that an incentive system would be more efficient in stimulating the hiring of domestic suppliers and promoting the country's industrialization. Studies of industrial economics indicate that penalties are not always effective in boosting the development of industrial sectors, while bonuses tend to generate positive results.
Incentives to increase local content
Abespetro's proposal suggests that the excess local content generated by companies be converted into credits for the acquisition of new exploration blocks. In this way, companies would be rewarded for using domestic suppliers, and Brazil would benefit from the creation of more jobs and the strengthening of local industry.
Abespetro's proposal to increase local content:
- Bonuses for companies that exceed targets
- Credits for future acquisitions of oil blocks
- Tax incentives and benefits for hiring local suppliers
Economic impacts of local content
Increasing local content in oil platforms has direct implications for the Brazilian economy. In addition to boosting job creation, the adoption of national suppliers promotes an increase in tax collection and the development of new technologies.
Main economic impacts of increasing local content:
- Expansion of the national production chain
- Strengthening the naval industry
- Increase in tax collection
- Reducing dependence on imports
Challenges for the Brazilian naval industry
Despite the clear benefits of increasing local content, the Brazilian shipbuilding industry still faces significant challenges. The shipyard crisis in recent years, associated to the fall in the price of oil and the reduction in investments, severely impacted the sector. The lack of competitiveness in terms of cost and deadline in relation to international suppliers is one of the biggest barriers.
The adoption of higher local content, combined with tax incentives and bonuses, could be a solution to revitalize the Brazilian naval industry and increase its participation in large-scale projects, such as the construction of oil platforms.
A path to the future of the Brazilian naval industry
The debate on increasing local content on oil platforms highlights the need to strengthen the domestic industry and the Brazilian supply chain. While Sinaval advocates an increase to 40%, Abespetro proposes incentives as the best way to promote the development of the sector.
The success of this initiative will depend on a balance between contractual requirements and appropriate incentives for companies. A higher percentage of local content would not only represent more jobs, but also an advance in economic independence and the development of Brazilian technology.
Be the first to react!