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Petrobras 'readying Gulf floater tender'

Brazil's state-owned oil company, Petrobras, is expected to issue a tender by August seeking a floating production, storage and offloading (FPSO) vessel for its US Gulf deep-water oil output, industry sources said today.

Brazil's state-owned oil company, Petrobras, is expected to issue a tender by August seeking a floating production, storage and offloading (FPSO) vessel for its US Gulf deep-water oil output, industry sources said today.

This is in line with fulfilling requirements for a formal proposal to the US Minerals Management Service (MMS), which oversees drilling on US federal lands, Reuters reported.

Petrobras is already in the market seeking two 450,000-barrel capacity shuttle tankers to deliver the deep-water crude to the US Gulf Coast.

Petrobras is on track to become the first company to bring out a FPSO vessel in the US Gulf, a MMS spokeswoman said recently.

In late November, MMS granted approval of Petrobras' conceptual plan for the FPSO deployment.

"We heard BW Offshore, SBM and Modec are going to bid in the FPSO tender," a source said.

"Petrobras is looking for a FPSO that can store up to 1.4 million barrels of crude."

The first production from three oil wells is scheduled for late 2009.

The FPSO will store oil output from two wells at the Cascade field and one well at Chinook.

In the Cascade field, Petrobras holds a 50% stake, with Devon holding the remaining share.

Petrobras has a 67% stake in the Chinook field, and Total owns the other 33%.

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