Singapore companies looking to expand presence in Brazil O&G market

Service providers from Singapore are interested to boost their presence in the Brazilian oil and gas market.

On Thursday, Rio de Janeiro industry federation Firjanand government agency Enterprise Singapore organized a meeting in Rio de Janeiro city with companies from both countries interested on forming partnerships in the Brazilian shipping and oil and gas markets. Firms are eyeing the expected demand for services and products after the Brazilian market opened in recent years.

“Brazil is not new for Singapore companies. Many have offices here, but over the years some have continued on and some have resized their presence. Now there is a renewed interest, due to all the positive signs that we are seeing, such as very encouraging policies,” Enterprise Singapore’s regional director Aik Lam Khor told BNamericas.

The Singaporean agency organized the trip of delegations from six companies to Brazil, with representatives from Jason Marine Group, Asom, Aluminium Offshore, Oceanmaster Engineering, RMZ Oilfield, and Pacific Radiance. According to Khor, the companies were addressing some of the challenges they are facing to enter Brazil today, such as new regulations. Meetings with new authorities and potential partners and customers were also on the agenda.

"Traditionally, it was only Petrobras (as customer) and now there are a lot more international oil companies, not just as producers, but also as service providers; there are more international players. Our hope is to be part of this ecosystem," Khor added.

With their large marine experience, Singaporean firms have already played a role in the development of Brazil’s oil and gas industry by providing services and products directly or indirectly to its players. Many of them now expect to close partnerships with local companies to take advantage of the growing demand.

“In the short term we expect to grow and build our presence in Brazil working with a local partner; in the medium and long term, we hope that we can be present here, where we will be closer to clients. We know there is a demand and we have the experience to provide our services to the Brazilian companies,” Shaun Teo of Jason Marine Group said.

Asian companies see the Brazilian market also as a potential base to expand into Latin American countries in the future, with the possibility of exporting services and products Guyana and Argentine, for example.

“To use Brazil as a base for other countries is entirely possible for some of the companies to develop some more cost-effective solutions as compared with starting off in new locations that do not have a developed business ecosystem yet,” Khor said.