QGEP allows more time for FPSO bids

More time: QGEP to announce FPSO winner in fourth quarter

Brazilian independent QGEP has allowed contractors more time to submit commercial bids to supply the company with a floating production, storage and offloading vessel to serve the Atlanta development in the Santos basin.

QGEP revealed in a conference call on Thursday that the winner in the tender will be selected in the fourth quarter, instead of the third quarter as originally planned.

Nevertheless, the company maintained its goal to have the FPSO on location at the end of 2015 to begin production from Atlanta early in 2016.

QGEP asked contractors to submit offers for a small FPSO with capacity to produce 25,000 barrels per day of oil – earmarked to be used as an early production system for a few years – and a larger unit with capacity to produce 80,000 bpd for the full field development solution.

If QGEP selects the smaller FPSO in the tender, that unit would later be replaced by a larger floater to give continuity to the Atlanta development.

Drillstem tests have indicated that each of the two wells that will be linked to the contracted FPSO can produce as much as 12,000 bpd of 14 degrees API crude.

QGEP also announced a net profit of 53.6 million reais ($23.7 million) in the second quarter, up 77.7% from the same period a year ago, due to higher natural gas production from the Manati field. Net revenue increased 26% to 126.2 million reais.

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