Negotiations between Petrobras and Modec advance

03/03/19

The first round of direct negotiation between Petrobras and Modec on the FPSO for Búzios V ended well. With no impasse and willing to seek a reasonable daily rate for both, the companies decided to continue with the talks, and the expectation is that until the end of March reach a consensus.

After the setback with Exmar, Petrobras is looking for an agreement with Modec to avoid a new approach to the market. The Japanese operator of FPSOs presented the second best price in Petrobras’ tender, with a daily rate of US $ 815 thousand, against Exmar’s US $ 635 thousand.

Should it have to launch a new tender, Petrobras will be forced to follow the rules of the State Law (13,303 / 2016), which would take at least six to eight months. The commercial proposals of the ongoing bidding, launched in May 2017, were opened in June of last year.

At the time, both Exmar and Modec presented a proposal with high and low national content, as foreseen . However, as the price with the highest local commitment was not above Petrobras’ budget, the second envelope was not opened.

The Búzios V FPSO will be installed in the northern part of the field and will have the capacity to produce 180,000 b / d and process 12 million m³ / d of gas. The charter term is 21 years, with the possibility of extension for an equal period.

Faced with the delay in the process of chartering the production unit, Petrobras postponed the start date of the project in the Business Plan 2019-2023, from 2020 to 2021.

Source: Brazil Energy Magazine

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