Siemens wants to double its revenues in the oil and gas sector in Brazil by 2020

With an eye on the growth of oil and gas supply Siemens has ambitious plans in Brazil for the next ANP oil auctions

The Brazilian oil and gas market continues to recover. After holding the permanent offer oil auctions and the 6th pre-salt round, the German Siemens is one more of the multinational companies to focus on Brazil. Auctions in 2019 will return the Campos Basin to a leading role.
The German conglomerate wants to double the revenue of its oil and gas department in Brazil in 2020 compared to 2018.

Siemens' interest is easily understood as Brazil should become the oil supply leader outside the countries belonging to the Organization of Petroleum Exporting Countries (OPEC) in 2019 and 2020.

CONSTRUCTION – FREE MARKET

Of the two auctions that the ANP will hold this year, the mega auction of the transfer of rights is being considered the largest in the world in the oil and gas industry and should yield the union 106 billion reais in signature bonuses alone.

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, in revenue, and the number of people it will also increase a lot, the volume of business… from 2018 to 2020 should double, or more”, he said.

the optimism

After the acquisitions 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 that we expect is still a result of past auctions and fields in which the Petrobras is optimizing exploration. We have perspectives that Brazil should be half of the world market for new platforms in the next 10 years”, explained Schöck.

A Siemens is a supplier of equipment and services for offshore oil platforms, where power generators and solutions for compressing natural gas for reinjection in producing fields stand out, in addition to automation and digitalization products.
Without disclosing the details, by division or business area, the company had a net income of 4,1 billion reais in the country in 2018.

One of Siemens' strengths is the possibility of fulfilling 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% of local content in general”, explained the head of the company's oil and gas area.

Siemens has also stood out in Brazilian onshore exploration, where it supplies energy equipment, such as substations and transmission lines.

Read too ! Petrobras plans to have its own platforms again!