Petrobras Signs Letter of Intention with GIEK

By Juliana Tafur, Editor & Publisher

RIO DE JANEIRO – Joint studies to identify business opportunities between Petrobras and Norwegian oil industry suppliers are currently underway, after a frame agreement signed late last month between Norway’s Export Credit Agency (GIEK) and the Brazilian petroleum giant.

“This is part of a greater strategy from the Norwegian government to take advantage of the business opportunities in Brazil’s offshore sector,” says Norway’s Commercial Affairs Consul in Brazil and Innovation Norway Director Reidun Beate Olsen.

So determined is the strategy that the GIEK approved a credit limit of up to one billion dollars to fund the procurement, by Petrobras, of goods and services from Norwegian companies.

A press release put out by the petroleum company informed that an initial 300 million dollars would be immediately disbursed, based on existing contracts. The remaining 700 million dollars would then be contingent upon the availability of new contracting.

Based on the number of calls Reidun has received in past months from Norwegian companies interested in entering the Brazilian market, finding these contracts won’t be difficult.

“In the past six months, more than 100 companies reached out to Innovation Norway [in Rio de Janeiro], and the majority of them are within the oil and gas industry,” explains the consul.

When Reidun started in her position a little less than a year ago, her team had to go on road shows to get jobs. Now, she has to refer requests to other companies fit for the job.

She’s pleased with this increase in demand and says: “Brazil is now where the world looks to find new markets. The U.S. is facing an economic recession, China is stabilizing and Brazil is growing.”

And just as Norwegians are seeking business opportunities with Brazilians, Reidun says many Brazilian companies are searching for specific technology offered by Norwegian companies.

“Norwegians and Brazilians make good partners,” she adds.