Chinese yards qualified by Brazilian oil giant Petrobras to bid as engineering, procurement and construction contractors in floater tenders face local content constraints that the yards are finding it difficult to solve.

Petrobras recently qualified China’s Offshore Oil Engineering Company (COOEC) and CIMC Raffles to compete for full EPC or charter contracts with big shipyards in South Korea and Singapore or international floater heavyweights such as SBM Offshore and Modec.

Though the status means Chinese yards can offer Petrobras a full solution for supplying floating production, storage and offloading vessels for pre-salt fields such as Buzios, the yards find it typically challenging to meet the local content requirement.