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Brazilian energy market calls for Turkish investments

Brazilian energy market calls for Turkish investments
Now this is perfect time to jump into Brazilian market, Brazil's IBP says, inviting Turkish companies to participate

By Ebru Sengul

ANKARA (AA) - Turkish energy companies have been invited to take part in Brazil's energy industry transformation process in which new bid rounds will be organized in 2017 and 2018, Milton Costa Filho, executive secretary of Brazilian Petroleum, Gas and Biofuels Institute (IBP) told Anadolu Agency.

In an exclusive interview ahead of 22nd World Petroleum Congress, of which Anadolu Agency is the global communication partner, and in which Brazil will participate, said Brazil has developed the technology and the skill to develop the huge recently discovered reserves 300 kilometers offshore in ultra-deep waters.

"I think that 90 percent of the oil and gas production in Brazil comes from offshore. Brazil is doing a good job, but we need to transform our industry and we need to attract companies to invest in Brazil," Filho said.

The new government in the country is changing the regulatory framework to organize bid rounds and attract investments, which according to Filho, is exactly what Brazil needs right now, suggesting that Turkish energy companies should avail of such opportunities.

"For example, Brazil was one of the countries that started the concept of local content. Local content is how you can capture the wealth of the oil business with the local industry, local providers of goods and services," he said.

Filho highlighted the role of the government in encouraging companies to be more competitive not only for the Turkish market but in the broad exportation of goods and services.

"In Brazil right now, we are going to relaunch our industry. In 2017, we are going to have four bid rounds and in 2018 we will have three bid rounds. We are going to need lots of construction companies, and this is a good opportunity. Now is the perfect time to jump into the Brazilian market," he argued.

Filho also shared research published by the National Development Bank which reports planned investments of around $150 billion in Brazil in the next three or four years with investments in the oil industry amounting to more than half of this.

"The country needs lots of investments in logistics, infrastructure, terminals, pipes and in other things. I really see good opportunities for Turkish companies and this is the right time because we are ending three consecutive years of economic crises.

"Last year, GDP growth was negative 3.6 percent. But this year we foresee one percent growth and next year almost 3 percent growth. We also foresee the relaunch of our industry in Brazil which will be very interesting," he said.


Filho, who is also the vice president of youth and gender in the WPC Executive Committee also said that Brazil hosted a very successful Future Leaders Forum, under the auspices of the WPC.

On Oct. 24-27, 2016, IBP brought the fifth edition of the largest gathering of young professionals in the petroleum industry to Rio de Janeiro, Brazil.

Young professionals from a variety of companies within the petroleum industry worldwide organize the Future Leaders Forum, the largest global gathering of young professionals in the petroleum industry. The event has been hosted in China, France, India and Canada to date.

"Indeed it was very successful Future Leaders Forum. We had 600 young attendants, about 70 high-level speakers, CEOs, leaders, and directors from many companies, half Brazilian and half from abroad. The main topics in the program were leadership, technology, innovation, cross-cultural issues and careers," he explained.

At the 22nd World Petroleum Congress, there will be many mentoring programs and activities specifically for the youth. These include games, speeches, interviews and youth awards.

- Change in oil industry

Filho said that the oil industry is transforming, and claimed that in the future the way that oil is used will change completely.

"A good example is electric cars. Electric cars are entering the market very fast. So in 30 years time, we will have a very big market for electric cars," he said adding that he envisages electricity generated from thermoelectrical power plant, fed by gas.

"We will have different configurations in refineries by using oil as feedstock for petrochemicals. This is a more novel use of oil instead of firing it and using it as fuel as this process is very inefficient," he said.

He concluded that although oil will have a presence in the long term, however, the end products would be more efficient and more environmentally-friendly.

source: News Feed
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