Upbeat mood at Rio Oil & Gas in Brazil

For more than 240 years, the name BUTTING has been synonymous with high quality and reliability. Behind the success story lies not only the parent plant in Knesebeck (Germany), but a powerful network with a large number of affiliated companies and global cooperation partners. In the global markets, the stainless steel processor is present locally with affiliated BUTTING companies – and this includes Brazil. In the capital, Rio de Janeiro, one of the most important events of the oil and gas industry in South America took place at the end of September: Rio Oil & Gas. BUTTING was represented there as an exhibitor with its Brazilian affiliate.

For the family business it was already our fifth presence as an exhibitor at Rio Oil & Gas, which is organised as a conference combined with a trade fair. BUTTING used this year's conference as an opportunity to present the latest product innovation - the GluBi® pipe. At the simultaneously held trade fair, BUTTING informed visitors about its entire range of services. Hermann Butting, President of the BUTTING Group, was on site during the fair: "There is an optimistic mood in the industry. Energy companies, also outside of Brazil, are investing again. The Brazilian oil and gas industry is finally experiencing an upward trend after several years of crisis."

A development which also has a positive effect on BUTTING's order balance sheet: "There are currently several projects on the market for which BUTTING has already been able to record orders or submit offers", explains Hermann Butting. So far, the stainless steel processor has supplied all clad riser pipes and flowlines for the Brazilian deep-sea projects. Several major orders from the oil and gas industry have been successfully handled in recent years by BUTTING with mechanically lined BuBi® pipes. These include the current Peregrino project for Equinor with 37.3 kilometres of pipeline and the Sapinhoa project with 29.5 kilometres of pipeline and Guará & Lula with 64 km of pipeline respectively - both for Petrobras. "We therefore also feel well positioned for the planned major projects."

A challenge is presented by "local content", which is required by the government and has to be taken into account in Brazilian projects. Local content dictates a percentage of local goods and services in the total value added. Hermann Butting: "It is not clearly defined which local value added means that an imported product is 'locally industrialised' and thus satisfies the local content requirement. In this situation, we benefit from our local affiliate. Our Brazilian colleagues are able to give us and our customers good advice and thus, despite a few hurdles, ensure the joint top-quality performance of BUTTING."

BUTTING - Progress by Tradition