Firms which took part in a Scottish trade mission to Brazil earlier this year expect to benefit from an estimated £17million following the trip.
Scottish Development International (SDI), in partnership with UK Trade and Investment (UKTI), Subsea UK and the Energy Industry Council took 27 Scottish companies to the country.
SDI is the international arm of economic development quango Scottish Enterprise (SE), which said yesterday the firms were forecasting the £17million boost over the next three years.
The estimate was hailed by Energy Minister Fergus Ewing, who said: “We are working with the industry to continue to strengthen Scotland’s position as a global leader in the sector, and these figures mark further growth in this important part of our economy.”
David Rennie, international sector head, oil and gas at SE, said an increasing number of Aberdeen businesses were showing interest in the Brazil.
He added: “It’s always pleasing to see local companies capitalising on opportunities for expansion into growth markets. Firms keen to explore the potential of this huge market will have the perfect opportunity to find out more first hand from our Brazilian guests during Offshore Europe (OE).”
SE, SDI and UKTI are together hosting a large Brazilian delegation, including representatives from state energy company Petrobras, at next week’s OE oil and gas show in Aberdeen.
As the world’s 10th largest energy consumer and 15th biggest oil producer, Brazil is seen as a priority market for Scottish companies servicing the global offshore supply chain.
Its deepwater conditions are similar to parts of the North Sea, making the country an obvious target for many energy service firms in the north-east.
However, it can be a challenging place to do business as Norwegian firm Subsea 7 found to its cost earlier this year. It suffered a financial blow on a major Brazilian contract, blaming weather problems and difficulties working in the country.
SE opened an office in the Brazilian city of Rio de Janeiro recently, its first to be dedicated to the oil and gas industry.
Among the firms on the trade mission in March was energy service firm Online Valves, a specialist division of the Aberdeen-based Online Electronics Group.
Online Valves operations manager James Padgham said: “Brazil is potentially a huge growth market for us. We currently export 50% of our products, with South America currently accounting for 5% of this, but we would expect the figure to increase over the next few years.”