Brazil’s state oil company Petrobras has sold substantial development rights to France’s Total for $2.2 billion, following production doldrums in Brazil over the past year as oil prices have declined. Since Petrobras is the largest national consumer of paints and coatings in the country, the financial infusion is expected to accelerate the planned Petrobras refocus on maintenance, along with core growth strategies.

In early March, Reuters reported that, “Petrobras plans to increase oil platform maintenance shutdowns through June, taking advantage of low prices and low demand to fix and upgrade equipment. Production of oil and natural gas in Brazil by Petrobras fell 7.1 percent in January from December, primarily because of maintenance.”

“Increasing industrial activities in oil & gas and marine segments, especially for subsea drilling machinery, as well as presence of a large number of oil reserves is expected to fuel demand for high-performance anti-corrosion coatings, especially in Brazil,” analysts at Transparency Market Research said.

Brazil also constitutes the largest share of the high-performance anti-corrosion coatings market in Latin America; the region “is likely to witness steadfast growth rate” reaching $18 billion by 2023, according to Transparency Market Research. Last year, Brazil imported $133 million worth of coatings overall, according to the national coatings manufacturers’ association, Abrafati.

Established marine coatings manufacturers in Brazil, like AkzoNobel, which has a facility in Sao Goncalo, in Rio de Janeiro state, are expected to tighten their relationships with Petrobras during this enhanced maintenance period. Akzo recently announced a new training program for technicians in various cities in the country.

One recent full-service foreign contract for $120 million was signed with Aker Solutions, which will provide maintenance and other services for subsea facilities at offshore oil and gas fields operated by Petrobras in Brazil. The three-year contract, which can also be extended by another three years, will cover maintenance, storage, supply of parts, as well as technical assistance for all subsea equipment delivered by Aker Solutions to Petrobras.

Petrobras total annual sales are over $100 billion, according to a recent company presentation. The company operates 18 refineries, a fleet of 181 ships – of which 55 are owned, close to 15,000 kilometers of gas and oil pipelines, and over 8,000 gas stations.

In 2015, Petrobras purchased some $34 billion in goods and services. Petrobras maintains about 12,000 contracts with 16,800 suppliers, the company estimates. For the acquisition of corrosion control and other coatings, Petrobras has altered its purchasing system to end decentralized budgets. Petrobras this year has restructured to centralize all its purchases and contracts under an Executive Management Division called Suprimentos de Bens e Serviços-SBS (Goods and Services Supply).

As part of the Total deal, Petrobras said it will transfer 22.5 percent of the rights for the lara concession and 35 percent of the rights for the Lapa field, as well as 50 percent interest in two cogeneration plants at a regasification terminal in Bahia.

The Total agreement also will include joint oil and gas development with Petrobras outside of Brazil.