Chinese company aims for more projects in Brazil

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With the world cheering for goals in the 2014 FIFA World Cup in Brazil, Chinese companies are seeking every chance to enter this market, especially in the infrastructure construction industry.

"We are glad that our bitumen is applied to the Maracana Stadium in Rio de Janeiro for this World Cup and we hope to enlarge such cooperation in the future," said Xu Jiahai, the president of China Offshore Oil & Gas Development & Utilization Company.

The company provided about 15,000 tons of heavy traffic bitumen for the reconstruction of Rio de Janeiro's Maracana Stadium and the Arena de Sao Paulo. It is the first time that China's bitumen products have entered the Latin American market.

The Brazilian government announced in 2013 that it will invest $17.9 billion in the next five years for infrastructure construction projects, including roads, hotels and airports.

"We are very interested in Brazil's large sum of infrastructure construction projects and we hope to take this chance show the local market our advanced technology and service," Xu said.

It took almost half a year for the company's product to arrive at Brazil. "We need to map out specific production and transporting schedules," said Xu. "Brazil is really far from China and our product can only be transported through shipping. It will to some extent add to our cost but we still want to grasp this market."

The product, named CNOOC 36-1, is one of the best brands in China, which has been used in major projects, including China's Three-Gorge Dam and the sports facilities of the Beijing Olympic Games.

"The projects of Maracana Stadium and Arena de Sao Paulo have high requirements for water resistance and environmental protection. Through this cooperation, our Brazilian clients realized the advantages of our products and we hope to bring more of China's bitumen products into this market," said Xu.

China Offshore Oil & Gas Development & Utilization Company, established in 1999 in Beijing, is a subsidiary of China National Offshore Oil Corporation (CNOOC). The company targets mid and downstream products, including CNOOC 36-1 heavy traffic bitumen and low-sulfur fuel oil.

In 2012 the company won the project for Brazil's two main stadiums for the 2014 World Cup and 2016 Olympic Games. Brazil's local bitumen producers and international companies participated in the bidding.

"The reason why Brazil chose us is because our products can meet the series of technical requirements of the stadium reconstruction projects and, at the same time, our advanced technology allows us to sell the product at relatively lower prices," Xu said.

China used to mainly rely on imported bitumen products such as from Royal Dutch Shell of Netherlands and the SK Innovation from the Republic of Korea. However, the situation gradually changed when China started to develop its own bitumen products 15 years ago.

As one of the leading bitumen producers in China, China Offshore Oil & Gas Development & Utilization Company has developed various product lines and occupied the high-end market in China. Its products are used for China's main construction projects such as highways and the Beijing National Airport.

"With the solid foundation in China, we are now trying to get more involved in the international market," said Xu. "Our product has entered the African markets and participated in the construction of Australia's mining projects. Now it is time for us to cooperate with Brazil."

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