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US subsea equipment to boost new pre-salt drilling in Brazil

20th September 2012

FMC Technologies seeks to increase technology output as hopes of increased oil output in Brazil ramp up amid fresh auction of promising pre-salt blocks

US subsea equipment to boost new pre-salt drilling in Brazil
FMC’s product line includes wet Christmas trees, a portfolio of underwater pipes and oil and gas flow-managing valves for deepwater wells

US subsea equipment manufacturer FMC Technologies vows to increase technology output in Brazil, it emerged on Wednesday, as demand grows for the company’s offshore oilfield products. The firm is also cashing in on expectations that oil output in the resource rich country will increase next year following a new auction of oil rights.

“I talk about increased [product] volume because of the pre-salt [blocks on auction], but the supply chain has to be prepared for [the increased volume],” FMC CBV president Nelson Leite told reporters on the sidelines of the Rio Oil & Gas 2012 conference. “That's the big challenge for the industry.”

FMC’s equipment has a footprint in about 50 per cent of the country’s offshore oil production, Leite claims, in addition to an 80 per cent share in the underwater manifolds market and a 35 per cent stake in the Christmas tree business.

The Houston-based company has poured some USD 200m over the past five years to boost product output, Leite added. Its product line includes wet Christmas trees, a portfolio of underwater pipes and oil and gas flow-managing valves for deepwater wells.

FMC’s ambitious move comes hot on the heels of Brasília’s announcement on Tuesday of a fresh auction of oil concessions next year, including pre-salt blocks in the southeast which have captured the industry’s interest.