Lowest bid revealed for Petrobras floater

Bids in: Maria das Gracas Foster-led Petrobras gets bids for Campos basin floater

Petrobras has received bids for the provision of a floating production, storage and offloading unit at a key complex in the Campos basin, with one partnership coming out on top.

Modec International and Brazilian partner Schahin have submitted the lowest bid to supply Brazilian state-owned player with an FPSO for the Tartaruga Verde and Tartaruga Mestica light oil complex.

The Schahin-Modec partnership bid below market expectations, offering a dayrate of $779,298 to cover charter and services on a floater that will be positioned in about 990 metres of water.

The second-placed bid, a dayrate of $1.008 million, was placed by UTC Engenharia and Bumi Armada,

The third contestant, Brazil’s Odebrecht Oil & Gas (OOG) and Teekay of Canada, declined to bid, having already submitted the best offer for a dynamically-positioned compact FPSO designed to carry out extended well-tests on Libra, the flagship pre-salt development off Brazil.

Tartaruga Verde and Tartaruga Mestica are part of an emerging light oil province in the Campos basin, and together are estimated to hold 351 million barrels of recoverable reserves.

Fractured Albian carbonate reservoirs mean managed pressure or underbalanced drilling has featured in the development plans.

Petrobras is requesting an FPSO with capacity to produce 150,000 barrels per day of oil and 4 million cubic metres per day of natural gas. The floater will be chartered for 20 years.

Prices were opened after the expiry of a period during which contestants could seek to disqualify each other on technical grounds.

Petrobras launched the tender in March and tried to whip up interest among Brazilian contractors like Andrade Gutierrez, Camargo Correa, Etesco, OAS, Petroserv and Queiroz Galvao Oil & Gas (QGOG).

Bidding rules require such companies to team up with experienced international floater partners, but the suspension of SBM Offshore unsettled the bidding process.

The contract is still subject to Petrobras board approval.

According to the bidding rules, a Brazilian contractor had to team up with an international floater specialist to bid for the Tartaruga Verde FPSO.

First oil from Tartaruga Verde is promised in 2017, with Tartaruga Mestica connecting up in a second phase.

OOG-Teekay’s proposed dayrate of $543,586 for the Libra floater, submitted recently, was only marginally cheaper than the rate bid by Schahin-Modec International.

UTC Engenharia and Bumi Armada bid a dayrate of $546,031 for Libra, however, so the Malaysian company will have to wait for new opportunities to make its debut in Brazil.

The unit will be chartered for eight years, starting in late 2016, with an option to renew for two further two-year terms.

The floater will produce light oil estimated at 27 degrees API from a series of EWTs.

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