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Keeping An Eye On The Growth Of The Oil And Gas Supply Siemens Has Ambitious Plans In Brazil For The Upcoming ANP Oil Auctions
The Brazilian oil and gas market continues to recover. After the permanent oil auctions and the 6th pre-salt round, the German Siemens is one of the multinational companies focusing on Brazil. 2019 Auctions Will Restore The Leading Role To The Campos Basin.
The German conglomerate aims to double the revenue of its oil and gas department in Brazil in 2020 compared to 2018.
Siemens’ interest is easily understood as Brazil is expected to become the leader in oil supply, excluding member countries of the Organization of the Petroleum Exporting Countries (OPEC), in 2019 and 2020.
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Of the two auctions that the ANP will still hold this year, the mega auction of the onerous assignment is being considered the largest in the world in the oil and gas industry and is expected to yield the union 106 billion reais just in signing bonuses.
The head of Siemens’ Oil and Gas unit in Brazil, Christian Schöck, spoke about the company’s expansion in the country, “I would say that by 2020, oil and gas should double in size, revenue, and the number of people will also increase significantly, the volume of business… from 2018 to 2020 should double, or more,” he stated.
The Optimism
After the acquisition of the auctioned fields, the Siemens executive expects many orders in the near future, “There is usually a maturation period of one to two years… this performance we expect is still a result of past auctions and fields where Petrobras is optimizing exploration. We have perspectives that Brazil should account for half of the global market for new platforms in the next 10 years,” explained Schöck.
The Siemens is a supplier of equipment and services for offshore oil platforms, where power generators and solutions for natural gas compression for reinjection in producing fields stand out, in addition to automation and digitization products.
Without disclosing details, by division or business area, the company had a net revenue of 4.1 billion reais in the country in 2018.
One of Siemens’ positive points is the ability to meet orders in Brazil with high levels of local content due to having a unit in Santa Bárbara d’Oeste, in the interior of São Paulo.
“We are working with 25% to 55% local content in general,” explained the head of the company’s oil and gas area.
Siemens has also been standing out in Brazilian onshore exploration, where it provides power equipment, such as substations and transmission lines.
Also Read! Petrobras Plans To Have Its Own Platforms Again!
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