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Special Piping Materials Welcomes New Brazilian Purchasing Regulations

Special Piping Materials is based at 7 different locations worldwide.  This integrated worldwide structure makes commerce much easier and more effective for international clients, no matter where they are.

Brazil relaxes purchasing regulations

The Brazilian government’s relaxation of purchasing regulations for the Oil Industry is designed to enhance the development of its vast offshore oil reserves, via foreign investment.  The new rules will also lower the cost of equipment by almost 50 percent as oil companies will no longer be restricted to purchasing locally. Exploration costs will also benefit by a reduction of 18 percent according to Fernando Coelho (Mines and Energy Minister).

This is welcome news for Oil Companies since progress can now be made in recovering and processing oil from deep-water oil fields. Development has stagnated for over 10 years not least due to local costs and the fact that Petrobras, the state-run oil company has been the sole operator. The fall in oil prices has also been a factor in what should be a thriving industry.  Much of the deep-water equipment needed is imported U.S. technology.

“Everyone agrees that with more realistic percentages we will be able to give a new dynamism to the oil and gas industry,” Coelho said.

The perceived effect on the local economy

However, not everyone is happy about the new changes.  ABIMAQ (the Brazilian Machine and Equipment Makers Association) believe that shut down local companies that assist the oil industry. They assert that the local economy will be adversely affected by the new rules, Brazilian jobs will decline and there will be no benefit financially to Brazil.

“Brazil has suddenly dumped the North Sea model of Norway and Britain and adopted the OPEC model of Venezuela, Nigeria and Angola which have no local service industries,” said ABIMAQ president Jose Velloso.

Special Piping Materials to the rescue

Special Piping Materials, with its network of overseas branches, can adapt perfectly to these new, future marketing conditions.  Guaranteeing top quality and rapid supply for local clients, our company has a reputation of always having local stock available worldwide.

Working closely with Special Piping Material’s branches in Houston and Singapore, our Brazil branch gives local clients the support they need with products such as skids and modules that have been manufactured outside of the country. Our locally employed team is focused on quick deliveries to local clients all over Brazil and South America.

For more information about Special Piping Materials products and services in Brazil contact us on comercial@specialpipingmaterials.com.br

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