In an unprecedented initiative, 23 O&G organizations establish minimum agenda for industry growth
In a meeting on Tuesday the 6th to discuss oil and gas investments in Brazil, 23 organizations from across the O&G value chain launched a “Minimum Agenda for the Oil Industry” at an event at the Rio de Janeiro State Industry Federation (Firjan).
Containing policy proposals for the Government, the agenda has been developed to help tackle the difficult crisis now faced by the industry and recommended initiatives to make Brazil more attractive for investment and develop a more competitive supply chain.
Eloi Fernández y Fernández, president of the National Petroleum Industry Organization (ONIP), said the agenda will help “to improve the business environment for the industry”. He also presented the key policy proposals to be submitted to the government, including regular auctions for oil and gas exploration blocks, multiple pre-salt operators (an adjustment to the production sharing model) and changes in industrial policy with simpler local content rules focused on strategic segments. The “Minimum Agenda” will be presented to the Minister of Mining and Energy, Eduardo Braga, next week.
Brazilian Institute for Oil, Gas and Biofuels (IBP) Chairman Jorge Camargo (photo) said oil entities’ move to unite at this time of crisis is timely to develop concrete and objective proposals that will help develop the industry. “Every crisis is an opportunity and we cannot let this moment of broad convergence pass us by without offering proposals that will pave the way for growth,” he said.
“Brazil,” he continued, “has developed significant potential since the pre-salt discoveries (40% of all offshore finds in recent years), but needs to implement adjustments in important areas for the sector to grow more competitive.”
Camargo also noted that Brazil is expected to attract investments of around US$ 25 billion in 2016, a relatively small slice of an estimated US$ 700 billion globally. “If we implement the proposed adjustments, we could attract additional funding to as much as 10% of global investments,” he said.
Eduardo Eugenio Gouveia Vieira, Chairman of the Board at ONIP and President of Firjan, said during the conference that as an industry not entirely dependent on the domestic market, Oil & Gas can be especially important for Brazil’s economy during a crisis. “With oil we have huge potential for exports. And behind the industry is an extensive, fully developed supply chain. Both Brazilian and foreign companies have invested and continue to invest in the industry, bringing technology and research centers. The Minimum Agenda is an opportunity and a way to tackle the investment stagnation, especially if we create a window for foreign investment,” he said.
Click here for a summary of the Minimum Agenda, or download the complete document.