Lack of support could undermine targets

There are growing signs that Brazil’s local content capacity could unravel without firm support.

The most visible failure by locals involves the Petrobras orders for four floating production, storage and offloading vessels for the Buzios field in the Santos basin, covered by a highly politicised transfer of rights.

The Odebrecht-led Enseada consortium had record-breaking overruns in trying to convert the four units while renovating a local shipyard.

As a consequence, Techint and, to a lesser extent, the EBR shipyard consortium are facing heavy carryover on their topside integration projects for the P-76 and P-74 FPSOs.

To mitigate these problems, virtually all of the work for the P-77 and 40% of the P-75 scope was transferred to China.

Upstream has learned that industrial relations at a Rio Grande fabrication and integration yard are so bad that QGI, a subsidiary of the Queiroz Galvao group, is also considering shipping its eight P-77 topside modules to China for integration.