New discoveries and the development of deepwater and ultra-deepwater pre-salt increases the demand for subsea equipment and service providers, attracting various international and local companies to compete for subsea contracts for the Brazilian offshore.

With the growth of the Brazilian O&G market, various small local operators has sprung up, truly coloring the oil market scene in the country and also attracting foreign investors looking at forming local partnerships.

While the news pertaining to discoveries and new field developments is highly encouraging, the bottleneck created by logistics needs for the pre-salt and lack of specialized workforce in various areas of the O&G industry is hindering a faster growth rate for the oil and shipbuilding industry in Brazil.

With the intention of making a more efficient pre-salt FPSO production in Brazil, Petrobras had selected the Rio Grande Shipyard works and dry-dock to be their FPSO production center.

The O&G service provider is giving priority to investments in Brazil as part of its worldwide investment strategy. Studying the Deepwater Pre-salt Carbonate Systems in Brazil is one of their main priorities.

As Petrobras announces that it will go through with five more deepwater pre-salt drilling projects this year, totaling 16 pre-salt wells drilled in 2010, a number which will probably increase in 2011 and more pre-salt, deepwater and shallow water plays keep being uncovered, new shipyard and new port projects are getting underway to make up the some of the infrastructure deficit in Brazil.

Present in Brazil for over 90 years, GE is preparing to invest $500 million in Brazil along the next 3 years and maintain its investments in local training and research. GE O&G may be one of the main recipients of this local investment as it is a market with great growth potential and where GE already has a very strong presence.

Using its Norwegian branch to launch a drillship operator is one of the options that Petrobras is evaluating in order to administer the 28 drillships the company plans to order.

With an eye on the lucrative subsea equipment market, suppliers are investing in technology, local workforce and expanding local facilities. New Brazilian companies specialized in subsea equipment and services also strive to compete with foreign suppliers.