ENERGY industry companies in the north and north-east have been urged to cash in on the “rich opportunities” offered by Brazil’s rapidly growing economy.
A report from a powerful committee of MPs has highlighted the potential role North Sea companies could play in the South American oil and gas sectors.
Brazil is believed to hold the sixth-largest oil and gas reserves in the world after recent discoveries in the “sub-salt” fields.
The opportunity to use expertise developed in the North Sea to tap into the emerging market was raised yesterday in a report produced by Westminster’s foreign affairs committee.
The MPs said Brazil’s energy sector was a “particular area of commercial interest for British firms”, and added it was “crucial” that the UK Government helped promote investment opportunities in the country.
Experts giving evidence to the committee were clear about the potential for the north and north-east.
Paul Domjan, director of John Howell and Company, a leading business consultancy, said: “The Brazilian market will need to build literally dozens – perhaps as many as 100 – of new drill ships, staff those ships with engineers and hire contractors to do all that work.
“A lot of those contractors will be UK-based, from Aberdeen.”
Frank Rosillo-Calle, an honorary research fellow at Imperial College London, said Brazil offered one of the “best environments” for foreign companies.
Responding to the report, Malcolm Webb, chief executive of industry body Oil and Gas UK, said: “The UK oil and gas industry’s world-class supply chain that has grown up alongside 40 years of production is perfectly placed to continue to foster excellence in engineering, manufacturing and technology here, and in doing so support hundreds of thousands of highly skilled jobs.
“Brazil is one of a range of oil and gas provinces around the world from which our products and expertise are now in increasing demand.”