Pay packet: drilling on the Chinook field in the ultra-deep Gulf of Mexico
Petrobras 'working on Gulf FPSO plan'
Brazil's state-owned oil company, Petrobras, is working on becoming the first company to bring out a floating, production, storage and offloading (FPSO) vessel in the Gulf of Mexico, a US government official said today.
Petrobras is seeking two to three new or converted 450,000-barrel capacity shuttle tankers to transport crude from the Cascade and Chinook oil wells.
The award of the shuttle tanker contract was expected to "take some time" even though the tender was issued about two months ago, a source close to the company said, Reuters reported.
"Petrobras is doing what we expect them to do. They are out there finalising the details in their proposal," said Caryl Fagot, a spokeswoman with the US Minerals Management Service (MMS).
In late November, MMS granted approval to Petrobras' conceptual plan to bring the first FPSO vessel into the gulf.
Petrobras is required to follow up with a formal plan for approval from MMS, she said.
"We don't foresee any problems with Petrobras submitting the formal proposal," Fagot said.
"Securing the ships is one of things they have to do to prepare for the formal proposal."
Production from the FPSO in the Gulf is expected to begin in 2009.
The US shipping fleet is protected by the Jones Act, which requires US ownership, construction and crew for all coastal waterborne commerce.
Overseas Shipholding Group, Teekay Shipping, a Norwegian shipping company, and a joint-venture between Teekay and a US shipping firm were expected to compete for the contract, a bidder said.
The Petrobras contract was significant as it could pave way for the holder to secure future shuttle tanker contracts in the Gulf, he said.