MODEC IS PRE-QUALIFIED FOR FPSO P-80 TENDER

(PetroNoticia) A surprise in the list of companies pre-qualified for the bidding of the P-80 platform, which will be installed in the Búzios field, in the Santos Basin pre-salt. The Japanese company Modec is one of the 13 pre-qualified companies and may eventually prepare proposals for the event, even after being banned by Petrobras from participating in bids for more than a year.  Modec received a punishment from the Brazilian state-owned company at the beginning of last month due to the low performance in the operations of three FPSOs: City of Rio de Janeiro, City of Santos and City of Niterói. According to what was disclosed at the time, Modec would be banned from bidding for 13 months as of March 31, 2021. But the list of companies pre-qualified for the P-80 bidding, available on the Petronect portal, displays the name of Modec – which, yes, has at least one alternative to get out of the corner of punishment and return to the game. In addition, a recent change in the prequalification notice also favored the Japanese shipowner.

The Petronotitias report sought answers to understand how the banned company could be on the pre-qualified list in the race for the P-80 contract. First, we looked to Petrobras to explain the situation. The oil company sent us the following note, which we will reproduce in full:

“Petrobrás informs that it notified the company Modec, on 03/31/2021, about the application of administrative sanction of temporary suspension of participation in bidding and impediment to contract with Petrobras for a period of 13 months. The sanction was applied through an administrative process, in compliance with the applicable legislation.

As a result of the application of the penalty, Modec will be prevented from participating in bids and contracting with Petrobras in the period between 03/31/2021 and 04/30/2022. According to the current legislation, Modec has the right to file an administrative appeal, as well as a request for self-sanitation, if it demonstrates the overcoming of the reasons that gave rise to the application of the penalty ”.

Self-sanitation, cited by the state in its response, is also called “self-cleaning” in the legal environment. It is a procedure, created first in the European Union, that allows a company to continue providing services to the government, in exceptional conditions, provided that it has taken steps to make it reliable again. According to our report, Modec’s situation is as follows: the company is effectively suspended from participating in the bids but, at the same time, managed to be pre-qualified for the P-80’s competition. Prequalification is a stage that precedes the bidding itself. Thus, if you appeal the decision and manage to get out of the impedement list in time, Modec may enter the bidding process for the contract. The deadline for submitting proposals by bidders is September 30.

The first version of the prequalification notice, however, prevented the presence of any company that was “serving a penalty of temporary suspension of participation in bidding or impediment to contract with Petrobrás”. On March 12, however, through the Communication Room with Suppliers, Petrobras revised the text of the pre-qualification notice, which no longer has this section and is now written as follows: “You can participate in this Pre-qualification interested parties, national or foreign, who meet all the requirements contained in this Call and its addenda. Participation in this prequalification of companies organized in the form of a consortium will not be allowed ”.

Petronotícia also sought out Modec to find out what its next actions would be in this scenario. But, maintaining the tradition of Japanese companies, generally very discreet and of few words, Modec said through its press office that “it does not comment on any aspect of bids or negotiations in progress”.

The P-80 will be the ninth definitive production system in the Búzios field, with a capacity to produce 225 thousand barrels of oil and 12 million m³ of gas. The call for bids for the unit was launched in the next days and will be in EPC mode (engineering, supply and construction), continuing Petrobras’ strategy of developing new projects with its own platforms. Next to the FPSO Almirante Tamandaré, which will also be installed in Búzios and is under construction, the P-80 will be the largest oil production unit to operate in Brazil. The vessel is expected to produce its first oil in 2026.

Modec’s presence would completely change the game. If it were able to effectively make proposals in the bidding process, it would be another strong candidate to dispute the contract. Just to remember, Modec has won four FPSOs projects for Petrobrás in recent years: Anita Garibaldi (Marlim field), Almirante Barroso (Búzios field), Guanabara (Mero field) and Carioca (Sépia field). It would be a strong competitor for other favorites, such as the Dutch SBM Offshore, the Italian Saipem and the Korean Hyundai Heavy Industries – also pre-qualified for the bid.

See below the complete list of companies pre-qualified for the tender, extracted from the Petronect website:

Supplier: HYUNDAI HEAVY INDUSTRIES CO., LTD.

Prequalification Request Date: 4/16/2020 – Disclosure Date: 4/30/2021 – Validity Date: 4/30/2022

Supplier: SEMBCORP MARINE RIGS & FLOATERS PTE. LTD.

Prequalification Request Date: 9/2/2020 – Disclosure Date: 4/30/2021 – Validity Date: 10/27/2021

Supplier: QUEIROZ GALVÃO NAVAL S.A.

Prequalification Request Date: 02/22/2021 – Disclosure Date: 04/30/2021 – Validity Date: 04/30/2022

Supplier: DAEWOO SHIPBUILDING & MARINE ENGINEERING CO., LTD.

Prequalification Request Date: 4/29/2020 – Disclosure Date: 4/30/2021 – Validity Date: 4/30/2022

Supplier: SAIPEM DO BRASIL SERVICOS DE PETROLEO LTDA.

Prequalification Request Date: 9/14/2020 – Disclosure Date: 11/10/2020 – Validity Date: 8/8/2022

Supplier: ESTALEIRO BRASFELS LTDA

Prequalification Request Date: 4/30/2020 – Disclosure Date: 4/30/2021 – Validity Date: 4/30/2022

Supplier: SAIPEM CONTRACTING NETHERLANDS B.V. –

Prequalification Request Date: 11/02/2021 – Disclosure Date: 4/30/2021 – Validity Date: 4/30/2022

Supplier: TECHNIP FRANCE SAS

Prequalification Request Date: 4/24/2020 – Disclosure Date: 4/30/2021 – Validity Date: 4/30/2022

Supplier: KEPPEL SHIPYARD LIMITED

Prequalification Request Date: 4/23/2020 – Disclosure Date: 4/30/2021 – Validity Date: 4/30/2022

Supplier: MODEC, INC.

Prequalification Request Date: 04/02/2020 – Disclosure Date: 02/09/2021 – Validity Date: 02/08/2022

Supplier: SINGLE BUOY MOORINGS, INC – SBM

Prequalification Request Date: 4/24/2020 – Disclosure Date: 4/30/2021 – Validity Date: 4/30/2022

Supplier: ESTALEIROS DO BRASIL LTDA.

Prequalification Request Date: 4/23/2020 – Disclosure Date: 6/18/2020 – Validity Date: 6/18/2021

Supplier: TOYO ENGINEERING CORPORATION

Prequalification Request Date: 4/23/2020 – Disclosure Date: 6/18/2020 – Validity Date: 6/18/2021

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