Marc Berger, MAN Diesel & Turbo, explains how the company is dealing with the challenges of the Brazilian oil and gas market.

MAN Diesel & Turbo has been present in Brazil for many years and currently employs over 300 staff operating out of a variety of locations in the country including Rio de Janeiro, Manaus, Macaé, Sao Sebastiao, Petropolis and Salvador.

The Brazilian subsidiary of MAN Diesel & Turbo serves mainly the domestic market with its turbo-machines for the oil and gas industry, as well as for process and base industries. The company’s portfolio also encompasses diesel engines for marine applications and thermoelectric power plants. Last year, the company celebrated 10 years of the Turbo division in Brazil. During the peak of the Brazilian ship building in the ‘60s and ‘70s huge MAN B&W two stroke engines were built by licensees in the country.

Despite fierce competition and stringent regulations like local content rules and the complicated fiscal system Brazil is a key growth market for MAN Diesel & Turbo.

In order to meet the challenges of the Brazilian oil and gas market, the company is pursuing a vigorous expansion of its presence in the country. Servicing the installed fleet is a very important business and MAN PrimeServ – the service brand of the company´s global after-sales network – has service facilities dotted around the country in the cities of Rio de Janeiro, Petrópolis, Macaé, Salvador Manaus and Sao Sebastiao. Recently, the integration of a high-tech repair center in Petrópolis has been concluded. Local repair services and spare parts manufacturing for turbomachinery and diesel engines has thus been added to the local product portfolio of MAN PrimeServ. The activities encompass specialized welding operations, grinding techniques, coating processes and electroerosion, in addition to conventional and CNC machining.

Petrobras

Petrobras the country’s national oil company has just announced a US US$ 236.7 billion budget under a 2013 - 2017 Business & Management Plan. The largest share of the total – an estimated 62%, or US$ 147.5 billion equivalent – is earmarked for Exploration and Production (E&P).

The energy corporation Petrobras has been a major customer of MAN Diesel & Turbo in Brazil for years. In fact, Petrobras recently renewed a service contract, that was first signed in 2002, for the maintenance and repair of 20 gas turbines on four offshore platforms for an additional five years plus five years. Furthermore, IESA Oleo e Gas S/A just ordered six two-stage screw compressor units for six FPSOs (floating production storage and offloading units) owned by end customer Petrobras. Acting as contractor here for the first time is MAN Diesel & Turbo Brazil. Contractual partner IESA Oleo e Gas S/A also has an option for two further units.

Tapping into the vast oil reserves off the coast of Brazil creates opportunities for MAN Diesel & Turbo, as Petrobras needs many drilling and service vessels for its operations and these could be outfitted with diesel engines and turbo compressors. There is a challenge in all this: complying with the regulations imposed by national authorities. These regulations require that for these projects, up to 70% of the value creation is local.

To read Part 2 of this article, please click here.

Adapted by David Bizley

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/09102013/local_competence_at_a_glance_part_1/