Chinese-Brazilian consortium to invest in production of probes for oil industry

11 October 2011

Sao Paulo, Brazil, 11 Oct – Chinese-Brazilian consortium Bomcobras plans to invest 130 million reals (US$73.6 million) in building a factory to manufacture probes for the oil industry in the Brazilian state of Bahia, the company said Monday.

Bomcobras is a partnership between the Asperbras group and Brasil China Petróleo (BRCP) and China’s Baoji Oilfield Machinery Company (Bomco), a subsidiary of semi state-owned China National Petroleum Corporation (CNPC).

The factory, which will be located in a 50,000 square metre area of the metropolitan region of Salvador, will manufacture equipment for land and sea-based oil exploration, including mud pumps, drilling pipes and towers, cranes and probes with a reach of up to 12,000 metres.

According to the vice president of Bomcobras and president of Asperbras, Francisco Colnaghi, the target is, in two years, “to be able to meet the national content standards demanded by the Brazilian government.”

Chinese state company Bomco, one of the world’s largest manufacturers of oil and gas equipment, controls 34 percent of the partnership, and the remaining 66 percent is in the hands of Brazilian groups Asperbras and BRCP.

The factory, which is expected to start operating in the second half of 2012, will start operating by producing probes for land-based drilling, of which 15 to 20 units per year are expected to be sold, at a unit cost of between US$10 and US$12 million. (macauhub)