Oilfield services company NOV is making a $200 million investment to roughly double capacity at its subsea flexible pipe manufacturing facility in Brazil, a move said to be due to expected growing demand.
The investment in the manufacturing facility in Açu will be made over the next three years, and, according to NOV, positions the company to capture expected growth in offshore development activity and advance solutions for high-CO2 applications.
The additional capacity is expected to be brought online in late 2029.
Jose Bayardo , NOV’s Chairman, President and Chief Executive Officer, said that the current manufacturing capacity has been operating at or near full utilization and has a backlog that stretches well into 2028. Without this planned expansion, the industry’s current capacity will be insufficient to meet demand at the end of this decade and into the 2030s with the anticipated increase in the development of offshore resources.
“We are expanding our subsea flexible pipe manufacturing facility in Açu, Brazil to support what we see as sustained, long-term demand. Along with our key customers, we believe this investment is critical to meeting growing demand driven by deepwater developments and an expected replacement cycle for flexible pipe installations,” said Bayardo
“This expansion also positions NOV to introduce new technologies, including our CO₂-resistant subsea flexible pipe designed for high-CO₂ applications, which has the potential to expand the market for flexible pipe.”