Page 23 - ipma italy journal_vol 2_04_2016
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IPMA ITALY Journal of Applied Project Management
Volume 2 no. 4 (October 2016)
at a competitive disadvantage with project. It was not a matter just to
their Customer. create a new plant infrastructure -
The legislation itself does not that is already itself a very complex
guarantee the local content effective task - but also to transfer people,
development. The Oil & Gas deep expertise, and leadership in a
water high technological standards completely new environment, far
and price’s competitiveness 9,000 Km from Italy, and testing a new
constitute a significant roadblock for operational model.
developing the local industry. The first question to be responded was
Recent research from a reputable relevant to the yard location. Where
Brazilian University indicates that the will we set the new facility?
Brazilian local industry is only able to Brazil is a very large country, 28 times
supply #5 of the #24 categories of larger than Italy. After evaluating
equipment considered critical to the different locations from multiple
Oil&Gas exploration and production. perspectives it was decided to set the
In the other #19 categories, the operations in Recife, State of
national market prices significantly Pernambuco.
exceed (2÷3x) those of foreign Recife is the sixth city of Brazil with a
competitors and the products are population of over 4 million people.
subject to untimely delivery or falling The city is facing a strong industrial
short of the quality standards development, highly promoted and
(http://www.mayerbrown.com). The sponsored by the local Authorities.
development of a local industry takes Apart from the positive general
time and the reliability of the local environment, boosting the growth of
Suppliers is a fundamental issue to be new industrial realities, another
considered by the Companies. significant advantage was identified
GE Oil & Gas was contractually in the plant logistic. An available area
required to develop a significant of 54,000 m was identified inside the
2
percentage of Local Content, old Port of Recife, therefore simplifying
subjected to high penalties in case of all off-loading activities from the
not compliance. Due to described multiple vessels coming from Italy and
difficult environment it was the final delivery to Customer. Indeed
fundamental to set a strategy aimed the local presence of a well-known
to achieve the contractual Local and reliable Italian Contractor,
Content without putting not available to support GE Oil & Gas in
acceptable risks on the operations or the yard construction and operational
compromising other project targets phase, was considered an asset to
like the project profitability. decrease the project risks.
In order to enhance the site reliability
and decrease the investments effort,
6. The New Recife Yard GE Oil & Gas decided to organize the
plant applying a well proven layout
The contractual requirement to similar to the Massa facility in Italy. The
establish the full operations in Brazil new facility was organized in six main
maybe represented one of the most areas, Fig. 02:
critical challenges of Cessão Onerosa
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