Petrobras Delays Saipem and Technip’s Gas Plants, CEO Says

Petroleo Brasileiro SA (PETR4), Brazil’s state-controlled oil producer, delayed plans to use floating natural-gas plants supplied by Saipem SpA (SPM), Technip SA (TEC) and SBM Offshore NV (SBMO) until after 2015, said its chief executive officer.

Petrobras has chosen to use pipelines to transport gas from fields in deep waters of the Atlantic Ocean to maximize the fuel’s value, CEO Jose Sergio Gabrielli told journalists today in London. A new pipeline will be online before the end of 2014 and Petrobras may use the floating plants after 2015 to help develop the largest oil discoveries in the Western Hemisphere in more than 30 years, he said.

Gabrielli said two bids were “attractive,” without naming the companies. The plants, which cost more than $3 billion, convert the gas into a liquid for transportation by ships.

Petrobras had been reviewing bids from France’s Technip, SBM Offshore of the Netherlands and Italy’s Saipem to build floating natural-gas units.

Petrobras rose 0.2 percent to 18.95 reais at 2:43 p.m. in Sao Paulo trading. The stock has fallen 31 percent this year, more than the 23 percent decline in Brazil’s benchmark Bovespa index.

To contact the reporters on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net Peter Millard in Rio de Janeiro at pmillard1@bloomberg.net;

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net.

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