Brazil driving LatAm deepwater services demand, says MCO-B
Oil and gas equipment manufacturer Mitsubishi Heavy Industries Compressor Corporation (MHI) will use Brazil as a springboard to tap into other South American markets, the head of the company's new local subsidiary told BNamericas.
MHI Compressor do Brasil (MCO-B) launched its operations in Piracicaba, São Paulo state, last month ahead of an expected jump in demand for centrifugal compressors from state-run oil company Petrobras.
Despite a prolonged recession and an ongoing Petrobras corruption scandal, MCO-B says it has been drawn to South America's largest country by investments in pre-salt fields deep below the Atlantic.
"Brazil is the biggest market among Latin American countries," MCO-B chief executive Jin Yamada said.
"The Brazilian market accounts for 70% of our compressors that have been supplied to this region. The important and primary task for this new subsidiary is the provision of after-sales services and our headquarters are considered as the center of such services.
"FPSO [Floating production, storage and offloading unit] market demand will grow and we will be able to meet to the local content requirements for this important market. We will invest here and manufacture and supply compressors for this purpose."
MCO-B is already in talks with several potential clients, including a petrochemical company and a pipeline operator "within the context of Latin America", according to Yamada.
He said the company expected to sign at least one new contract "shortly".
In addition, MCO-B has already secured technical supervision contracts for two FPSO units belonging to Petrobras, Yamada added.
Other countries on MCO-B's radar are Argentina, Peru, Colombia and Bolivia.
"The current oil price slump is having a substantial impact on new FPSO units," Yamada said. "But Petrobras and other oil companies are already adapting themselves to this new reality and we believe that it will be settled in the near future and that MCO-B will be ready to respond to the future demand of new FPSO markets in a timely manner."
The full interview with Yamada can be seen here.
ALSO READ - Deepwater revival: Can pre-salt oil bring investors back to Brazil?
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