Technological Cooperation with New WCT Suppliers

ABSTRACT This paper describes steps followed by PETROBRAS to carry out technological cooperation agreements with new suppliers of Wet Christmas Trees (WCT) in order to motivate the technological development of the WCT market and to reduce the costs related to the equipment. It deals with the technical aspects of the WCT designed by PETROBRAS and with the general characteristics of the agreements that are being negotiated with prospective suppliers aiming at the transference of the developed technology. 1. INTRODUCTION WET CHRISTMAS TREE, or simply WCT, is the completion equipment connected to a subsea wellhead system with the purpose of controlling and directing the oil or gas production, or the gas or water injection, and also allowing workover operations in the well. It can be remotely operated by the production platform or the completion rig. The piece of equipment is considered by PETROBRAS as having strategic importance because there is a great expectation of an increase in the Brazilian subsea oil production, currently corresponding to 47 percent of the national oil production, due to an increase in the number of deep water completions, The technological complexity of the equipment, its prices, and the special characteristics of the market have also contributed to place the equipment in a strategic category. So far, PETROBRAS has already purchased amound One quarter of the approximate total amount of 800 WCT manufactured all over the world, which means that it is the greatest consumer of this equipment in the world. In order to fulfill its present needs, PETROBRAS relies on four Brazilian suppliers, each one licensed by one of the four international traditional WCT manufacturers. Considering the advantages of being the greatest consumer and the company with the biggest experience and technology for the equipment installation, PETROBRAS developed its own WCT design and negotiated technological cooperation agreements with prospective manufacturers in order to encourage the flourishing of new suppliers in this market and the implementation of alliances with them. 2. STRATEGIC DECISION In 1987, PETROBRAS formed a work group with the purpose of evaluating the national and international conditions of the market of all equipment considered by PETROBRAS as strategic for the subsea oil production. WCT was among the selected ones, due to its Technological complexity, and the special characteristics of the market, including he number of suppliers and the prices. At the end of the analysis, the following aspects were Pointed Out.because of the expectations of reduction in the number of suppliers, the WCT market was in a worrying situation.it would be very important for PETROBRAS to master he WCT technology and its benefits.PETROBRAS was world wider recognized as the leader in deep water completion and the greatest responsible for this technology development.Massive investments in deep water completion were expected. Considering the work group final report, PETROBRAS decided to take a series of steps in order to enable the development of the WCT design and the consolidation within PETROBRAS of the experience in making basic design of strategic equipment.