“Brazil presents vast opportunities in oil and gas, but also some specific challenges, that should be met with special attention and solutions,” says Adhemar Freire, Country Manager for Norwegian Energy Partners in Brazil.
On Monday, he visited Arendal and Kristiansand to provide GCE NODE companies updated information on the Brazilian market.
Norwegian Energy Partners (NORWEP), Innovation Norway and The Norwegian General Consul in Brazil recently published a new report titled: “How to do business in Brazil”. The report addresses some key issues for companies that are looking to enter the Brazilian market.
DOING BUSINESS IN BRAZIL IS HARD
“Brazil ranks third on The Global Business Complexity Index, which indicates that it is hard to do business in Brazil. True, it is difficult to do business in Brazil, but it is not impossible,” says Freire.
General issues that by experience have cost Norwegian companies considerable time and money are cultural issues, the management of a complex administrative regulatory framework, local recruitment and trying to remote-control operations from Norway.
“Face-to-face-meetings on a day-to-day-basis is very important. Anything less is seen as lack of commitment to your operation in Brazil,” says Freire.
According to Freire, the Brazilian business sector is now more open and foreign investments are encouraged. Petrobras no longer the sole operator of Pre-Salt fields, leading to new interest from international oil companies.
“Brazil is getting back on track!” says Freire, and lists three drivers for the oil and gas sector:
- Improved national policies: Tough, but necessary reforms
- Petrobras recovery: Back to financial stability and growth. Reported first annual profit in five years.
- New license rounds, resumed after 5-year pause
“There are also new local content rules, which lowers local content requirements and simplifies administration,” says Freire.