French Firm To Open Flexible Pipe Plant In Brazil

September 25, 2013

France's Technip engineering group said Monday it will open a huge flexible pipe plant near Rio in December to meet demand ahead of exploitation of Brazil's huge offshore oil reserves.

The plant, which will be the biggest in Latin America, is located at the Acu Superport, one of the world's biggest port complexes.

Nelson Porchet, human resources chief at Technip's Brazilian branch, said the factory would be inaugurated in the second half of December and would aim to produce 120 kilometers (74 miles) of flexible pipes in the first year.

The plant, Technip's second in Brazil, will be built with an investment of $272 million and aims to respond to increased demand foreseen for developing the huge pre-salt oil and gas reserves discovered in 2007 off southeastern Brazil.

The National Petroleum Agency estimates that those reserves, buried beneath several kilometers of ocean, bedrock and hot salt beds, could hold more than 100 billion barrels of high-quality recoverable crude and could turn Brazil into one of the world's top exporters.

Copyright, AFP, 2013.