Brazilian uptick

Pietro Ferreira, Energy Industries Council

September 1, 2016

A number of key contracts were awarded in 1H 2016 in Brazil, pointing to a recovery of the local oil and gas sector.

The Polvo FPSO (right) while docked at Keppel FELS shipyard. Photo from Keppel.

At the time of writing, the winning bidder for the charter contract of the Libra (pilot project) and Sépia floating production, storage and offloading (FPSO) units had yet to be announced.

In July, Petrobras received proposals from SBM Offshore, Modec, BW Offshore and the Bluewater and Queiroz Galvão consortium, but it was later revealed that only Modec qualified for the two contracts. Local industry sources speculate that a re-bid is likely to take place.

In late June, Wood Group was awarded a “multi-million dollar” contract to provide detailed engineering and procurement services to Statoil for the development of the WHP-C wellhead platform. The work will be performed for US-based Kiewit Offshore Services, which will build the platform’s deck. WHP-C will be the third wellhead platform at the Peregrino heavy field in the Campos basin and its construction is part of the field’s second development phase.

Subsea

In April, Aker Solutions was awarded a three-year US$134 million contract by Petrobras covering the maintenance, storage, parts supply and technical assistance for all the equipment delivered to the oil company in Brazil. Aker’s subsea services unit in Rio das Ostras will be responsible for the contract, which will meet an 87% local content requirement.

Operations and maintenance

In early January, Wood Group PSN was awarded a two-year contract by PetroRio, a local oil company, to provide operation and maintenance services for the Polvo A fixed platform at field of the same name in the Campos Basin. In addition to this platform, the field also features the FPSO Polvo, owned by BW Offshore. The FPSO specialist obtained a two-year extension of its lease and operation contract with PetroRio in December 2015.

Market perspectives

The acquisition of a 66% operated interest in the Carcará pre-salt field by Statoil announced in July was welcomed by the local supply chain, which also met with great enthusiasm plans by Karoon to install an FPSO in the Santos basin by 2019. Meanwhile, the release of Petrobras’ 2016-2020 business plan, due in October, is highly anticipated.

A graduate in International Relations, Pietro Ferreira works as a Regional Analyst at the Energy Industries Council (EIC) regional office in Rio de Janeiro, Brazil.