RIO DE JANEIRO—Norwegian supplier Aker Solutions is working to expand its business in Brazil’s oil and gas sector, having recently signed an agreement to acquire the remaining 30% of the Brazilian company CSE Mecânica e Instrumentação to bring its interest to 100%.

According to Aker Solutions Manager Maria Peralta, the acquisition reinforces the company’s long-term commitment to the country and Aker Solutions’ growing investment in the Brazilian market for mature field services. CSE’s services include construction, assembly, commissioning and operation of cranes in offshore and onshore facilities. In 2016, Aker Solutions purchased 70% of CSE to boost its services in Brazil.

CSE has been operating in the Campos Basin since 1988, according to its website.

As Campos Basin fields age after more than 40 years of exploratory activities, the basin has opened decommissioning opportunities for the companies seven though it still plays a leading role in the Brazilian upstream sector.

“Aker Solutions does not have decommissioning activities in Brazil yet. But the company has the know-how to do so. The regulation for this type of service is still under discussion in Brazil and Petrobras would be the main potential customer,” Peralta said.

Brazil’s Congress is currently discussing regulation for decommissioning activities along with the terms of concessions of several old fields. Petrobras’ divestment program is expected to trigger new entrants into Brazil, which could accelerate the decommissioning process coupled with new investments to revitalize and extend the life of these mature fields.

ANP, the oil and gas regulator for Brazil, has also been interacting with industry players to review applicable standards related to decommissioning. This revision is fundamental to unlock projects and adopt  best known environmental and economic practices.

Expanding In Brazil

The acquisition of CSE is part of Aker Solutions’ strategy to strengthen its position as an equipment and maintenance supplier in Brazil’s oil and gas industry.

Aker Solutions won a contract in 2018 to provide maintenance and modification services for three platforms at Petrobras-operated oil and gas fields offshore Brazil. The four-year contract includes an option for a one-year extension. The order covers a range of services to renovate, repair and upgrade the FPSO units at the Barracuda, Caratinga and Albacora Leste fields in the Campos Basin. It also entails management at the yard where replacement parts and other equipment will be built.

The work started in March 2018 with final deliveries scheduled for first-quarter 2022. In January 2018, the company successfully installed its first subsea manifold system for Petrobras’ presalt Iracema Sul and Lula Norte fields.

CSE has roughly 2,800 employees in a number of onshore and offshore services facilities that serve the country’s different oil and gas basins under different contracts. With a current order backlog of about US$300 million, the company has a consistent track record of delivering high quality services. It received in 2018 the best supplier award in the onshore and offshore and HSE categories by Petrobras.

“The contracts for maintenance services for 12 platforms signed with Petrobras in 2018 reinforce the company’s decision to invest in the brownfield segment with the acquisition of CSE. The combination of CSE’s local experience with Aker Solutions’ global expertise in services creates growth opportunities and even more value for our end customer,” Peralta said.

Peralta highlighted the signing of a contract with Petrobras for maintenance of tanks designed to store oil and gas in the state of Sao Paulo, another segment previously unexplored by the company in Brazil. The value of the contract is about $10 million and will last for 870 days.

CSE continues to operate as an independent legal entity.

 

 

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