The opening of the Brazilian oil and gas market to foreign investors has been a key catalyst for the rapid development of the local petroleum industry, which has seen a remarkable 75% growth rate over the past few years. Recent offshore discoveries have enabled the industry to explore and develop, and also start production on a new frontier – the so-called pre-salt cluster. As a result, Brazil is today firmly positioned as a centre for major international oil and gas reserve development.
The rising industry
The growth of the Brazilian offshore sector has had a major impact on the nation’s shipping and offshore supply chain, which has absorbed considerable investment as it develops new opportunities. Across all related segments, the goods and services supply chain has created around 420,000 full-time jobs in Brazil, either directly or indirectly.
Marine and offshore industries have a particular importance in the global economy due to their strategic value and their ability to create large numbers of jobs. In addition, they have great influence on domestic economies as a result of their impact on the wider supply chain. In countries where they are particularly strong, therefore, these sectors often enjoy significant government incentives.
Georgia Barroso Souza is an associate at Vieira Rezende Barbosa e Guerreiro Advogados, an associated law firm of Wikborg Rein, in Rio de Janeiro
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