Scottish companies learn about opportunities for growth in Brazil

Scotland’s oil & gas supply chain is being urged to take advantage of Brazil’s fast paced economic growth and investment in energy projects at a special event in Aberdeen today (Tuesday 9^th October).

Over 100 Scottish oil & gas companies will learn more about the lucrative Brazilian market at Maximising our Future: Opportunities in Brazil, organised by Scottish Development International, Scottish Enterprise and Subsea UK.

Keynote speaker, Scottish Energy Minister, Fergus Ewing, will tell the companies that Brazil presents an excellent opportunity for Scottish business. He said: "Scotland has an incredible wealth of energy resources from a range of generating technologies, capable of both meeting our energy needs and significant exports to parts of the UK and Europe.

"As well as natural resources, we also have a fantastic pool of skills, and an innovative, world leading industry. It's clear there are great opportunities for Scottish companies in Brazil, and that the skills and expertise built up over the past decades in the North Sea will be of great use to companies seeking to invest."

Other speakers include Alan Charlton, the UK Ambassador in Brazil, Antonio Claudio Correa from Brazil’s national energy company Petrobras, Anne MacColl of Scottish Development International and Neil Gordon from Subsea UK.

The industry-led Oil & Gas Strategy for Scotland, which was launched earlier this year, identified increasing export activity as a key priority for the sector. With Brazilian GDP forecast to rise to almost 3.3 per cent next year, and the recent announcement by Petrobras of a capital expenditure programme worth US$224.7bn – there are significant market opportunities for Scottish companies, particularly in the subsea sector.

Scottish Development International is currently setting up an office in Rio de Janeiro to ensure that companies have the support they need to tap into these potential opportunities.

Anne MacColl, chief executive of Scottish Development International said: “Scotland’s oil & gas sector already has an outstanding global reputation for our world class companies, coupled with talent and research excellence. Last year alone our international sales from the oil & gas supply chain were valued at an impressive £7.6 billion.

"We know that there is significant potential to grow this even further and the opportunities of the Brazilian market have a key role to play in this. We are working on a number of activities to support the development of this market and in particular our new office in Rio de Janeiro will enable us to provide on the ground support for Scottish companies.

“This will enable us to increase our support for companies in negotiating some of the challenges that come with operating in this market, such as taxation rules and bureaucratic regulations.”

Neil Gordon, chief executive of Subsea UK, added:

“With Brazilian growth projected to significantly increase over the next 5 years, it has become a key region which offers a range of opportunities for UK subsea companies.

"Although there are many challenges surrounding the local supply chain, we hope that by tapping into companies’ previous experience in Brazil, this report will not only offer guidance but encourage companies to take that leap into a new market place.

"Collaboration and partnerships with Brazilian organisations are essential for UK companies as well as sharing our expertise, skills and technology.

"With global subsea growth predicted to double from £20 billion to £40 billion by 2017, the international market offers a plethora of opportunities and continues to be a priority for us as an organisation supporting our members.”