Subsea UK

Subsea UK to Make its Mark with the World's Biggest Oil & Gas Player

Press Release   •   Sep 07, 2010 16:27 BST

Subsea UK to Make its Mark with the World's Biggest Oil & Gas Player



Subsea UK is taking a delegation to Brazil to examine opportunities in
what is becoming one of the biggest oil and gas markets in the world.



The industry body's pavillion at Rio Oil & Gas Expo and Conference from
13 - 16 September will showcase some of the UK's leading subsea
expertise and technology with companies including flexlife, Hydrasun,
Nautronix and SMD exhibiting.



Subsea UK, in association with UKT&I, has organised a presentation for
these companies from Petrobras and other firms on the opportunities
available and how to do business in Brazil.



Alistair Birnie, chief executive of Subsea UK said: "With future
spending plans to 2013 of around $150 billion, Petrobras is a major
player. This opportunity to meet with their upstream team is therefore
hugely attractive for UK companies."



According to a recent report by Chris Whorton for UK Energy Excellence,
subsea equipment forecast spending in Brazil for the period 2009 to 2014
was estimated at around $14 billion with 90% of that taking place in
Brazil.





The South American country will require up to 20% of the world's
production capacity of subsea Christmas trees over the next five years.





Over 70% of subsea equipment has to be manufactured in Brazil but
in-country specialist steel and precision engineering companies do not
have the skills and capacity to meet demand. In addition there are gaps
in the Brazilian supply chain for specialist areas such as controls,
sensor technologies and engineering know-how.




"UK companies have real potential to exploit these challenges," added Mr
Birnie. "For many years the UK has been at the centre of precision
engineering, forging and processing of specialist steels and corrosion
resistant alloys as well as in engineering and the manufacture and
design of complex controls and sensor technologies. We are well placed
to forge partnerships with Brazilian companies to help them meet
capacity.



"With almost 90 per cent of oil production and nearly three quarters of
gas production originating from offshore fields, most at extreme depths,
UK subsea manufacturing, engineering and technologies will also be
welcomed."