Búzios V FPSO delayed another

March 12, 2019

The first oil of the Búzios V FPSO will delay another year. Petrobras postponed from 2021 to 2022 the start date of the Transfer of Rights assignment project in the Santos Basin pre-salt, originally planned for 2020.

The delay was confirmed by the oil company, but was already taken for granted by the market, as the process of chartering the production unit remains open, after more than a year of launching the bid. After the Exmar imbroglio – which presented the lowest price but could not present the letters of guarantee and financing – Petrobras has been negotiating the FPSO contract directly with Modec, the group that made the second best offer.

The companies have already held five meetings aimed at negotiating the daily rate, the last of them on Monday (11/3). The negotiations are expected to be completed by the end of March, but even if the process is successful, the signing of the contract should occur only at the end of the first half, in view of the bureaucratic procedures demanded by the oil company.

Officially, both Petrobras and Modec avoid giving details about the process. The FPSO operator has been requesting new quotations from major suppliers, including the Cosco shipyard in China.

Modec’s original daily bid rate was $ 815, compared to Exmar’s $ 635,000. In the market, the bet is that the Japanese company negotiate its proposal until, at most, the level of US $ 750 thousand.

The new timeline depends on the completion of negotiations with Modec. If the companies do not reach an agreement, Petrobras will have to review, once again, the date of the FPSO’s start-up, since, on average, such bids drag on for about a year, and the construction deadline of an FPSO ranges from 34 months to 36 months.

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

With the change in schedule, Petrobras will have five FPSOs entering operation 2022, a year that already had the projects of Parque das Baleias and Marlim 1, both in the Campos Basin, and Mero 2 in Santos.

According to the company, the postponement of the first Búzios V oil will have an impact on the production estimated at 60 thousand bopd in the period 2022-2023.

Source: Brazil Energy

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