NOV is investing $200 million over three years to nearly double the capacity of its subsea flexible pipe manufacturing plant in the Port of Acu, Brazil. This expansion is driven by rising demand for flexible risers in Brazil, particularly from Petrobras for its Campos and Santos basin projects.

Market Demand and Capacity

The company's current Acu facility is operating at or near full capacity, with a production backlog extending into 2028. The investment is deemed critical to meet growing demand from deepwater developments and an expected replacement cycle for existing flexible pipe installations. Industry capacity is projected to be insufficient to meet demand by the end of this decade and into the 2030s without this additional capacity, which is planned to come online in late 2029.

Technological Development

The expansion will also facilitate the introduction of new technologies. Specifically, NOV plans to implement its new generation of carbon dioxide-resistant subsea flexible pipe, designed for high-CO2 applications in pre-salt fields.

Financial Impact

The $200 million investment plan will increase the company's capital expenditure for 2026 by approximately $50 million.