Petrobras set to approve Yinson’s proposal for Albacora, sources say

Sept. 13 (agencuainfra.com) Petrobras is expected to approve the proposal submitted by the Malaysian builder and operator Yinson for the Albacora FPSO (P-88), a Petrobras project in the Campos Basin. Sources at the state-owned company told Agência iNFRA that, despite concerns raised privately by competitors, the project design complies with the requirements.

Companies that participated in the tender and submitted higher-cost bids have questioned the design proposed by Yinson, the competition’s frontrunner. The oil company is finalizing its review of the project documents for the Albacora revitalization.

The Malaysian company submitted the lowest price in the tender: US$ 2.29 billion. Following it were proposals from China’s COOEC (US$ 2.84 billion), India’s Shapoorji Pallonji (US$ 2.9 billion), Malaysia’s MISC (US$ 3.05 billion), and Norway’s BW Offshore (US$ 3.19 billion).

The unit, designated P-88, will be built under the BOT (Build, Operate, and Transfer) model, in which the contractor is responsible for the design, construction, assembly, and operation of the asset for an initial period defined in the contract. Subsequently, operations are transferred to Petrobras.

Cost reduction

The platform will have a production capacity of 120,000 barrels of oil per day (bpd) and up to 4.3 million cubic meters per day (m³/day) of natural gas, with first oil expected after 2031. The vessel is part of Petrobras’s initiative to optimize its upcoming platforms; in this case, a weight reduction of 2,600 tonnes resulted in an approximate 7% discount on the estimated CAPEX. “Project optimization is a relentless pursuit for Petrobras. We are willing to trade off some efficiency if it means increased profitability. Naturally, we evaluate this on a case-by-case basis without ever losing sight of operational safety. However, for projects smaller than those at Búzios, for instance, profit margins are somewhat tighter,” explained Lourenço Fróes, coordinator of Petrobras’s Profort (New FPSO Program).

The Albacora field, awarded during the “Round Zero” licensing process, is located in the Campos Basin and is operated by Petrobras with a 100% stake. Currently, two units are operating in the field: the P-31 FPSO, with an estimated end-of-life in 2028, and the P-25 semi-submersible, scheduled to reach the end of its service life this year. The state-owned company extended the P-31’s service life precisely because of delays in the tender for the Albacora revitalization project.