Brazil's Petrobras is tendering for a billion-dollar-plus contract covering the provision of a new logistics terminal in Rio de Janeiro state to serve as a giant integrated hub providing services and supporting operations for flexible lines.

Multiple sources told Upstream that Petrobras invited a number of contractors such as TechnipFMC, Subsea 7, Baker Hughes, NOV, Oceaneering, Royal IHC, Triunfo Logistica, Jurong Aracruz, Prysmian, Prumo Logistica and possibly Saipem and Edison Chouest to submit commercial proposals on 24 May.

Petrobras is understood to be asking for a new base equipped with four docking berths capable of simultaneously handling operations on a quartet of flexible pipelaying support vessels.

The facility should have capacity for 400 reels weighing about a combined 25,000 tonnes.

The contract will cover a five-year period, renewable for an additional five years, with operations starting in 2020.

“This is a huge contract on offer. We are probably talking something close to 4 billion reais ($1.1 billion),” said a well-informed source.

The winner will be responsible for providing storage, handling, inspection, testing, load-out, internal cleaning and maintenance of flexible pipes from the logistics base.

Petrobras is also asking for a decommissioning area to scrap old flexible lines that are either being removed from offshore fields or stored underwater in a sustainable way, sources said.

The oil giant has determined the Port of Acu industrial complex in Rio de Janeiro state as the reference point for the new logistics terminal, given its closeness to the Campos basin.

According to the bidding rules, the farther from the Campos basin the facilities offered by companies submitting proposals in the tender are, the higher the percentage of a penalty rate will be added to the final value of the offer. Sources said this “penalty rate” can reach as much as 147% over the value of the original bid, depending on the proposed location.

Industry sources suggested that companies that already have plants at Acu, including TechnipFMC and NOV, are looking to expand their footprint in the port to compete for the new Petrobras contract. Prumo Logistica, which has a joint venture with Brazilian services provider GranEnergia to operate the Dome support base in Acu, is also seen as a strong contender. Royal IHC holds a 50% stake in GranEnergia.

Four years ago, Petrobras tendered for a similar logistics base and received commercial bids worth $1.25 billion from Triunfo and $1.8 billion from Technip — before its merger with FMC Technologies — but the oil giant opted to discard the proposals made at that time due to their high prices.

Petrobras already has two terminals for flexible lines in Brazil, Bavit in the city of Vitoria and Banit in the city of Niteroi, but both are much smaller in scale when compared to the new base being sought by the company in the current tender, said sources.

“We are hearing rumours that Petrobras may (eventually) opt to discontinue operations at Bavit and/or Banit by contracting this new logistics base, probably in Acu, to take advantage of its location,” another source added.

TechnipFMC has a four-year contract with Petrobras, expiring in mid-2020, covering operations at Bavit, while GE-controlled Baker Hughes handles activities at Banit.

The decision to contract for a new flexibles terminal takes place despite Petrobras’ recent decision to switch to rigid riser-based solutions for the development of the Mero pre-salt field.

“Even if Petrobras opts to go with rigid risers for (some of the new) developments, there is still a lot of work to be done with flexibles in existing fields and other projects,” said a source.

Petrobras has a fleet of 16 PLSVs in operation, the majority of which are on long-term contracts until next decade, and has two other 300-tonne vessels — Skandi Recife and Skandi Olinda — set for delivery later this year.

Weekly

Petrobras starts hunt for new Rio logistics terminal