Petrobras Platform Said to Draw Bids From SBM, Modec and BW
SBM Offshore NV (SBMO), Modec Inc (6269), and BW Offshore Ltd (BWO) are competing to supply Petroleo Brasileiro SA with a production vessel as the biggest producer in ultra-deep waters looks to rebound from the lowest domestic output since 2008, said two people with knowledge of the tender process.
The three builders of floating production equipment are drafting proposals to build a vessel that Rio de Janeiro-based Petrobras plans to deploy at the Tartaruga Verde, or Green Turtle, field in the Campos Basin, said the people, asking not to be identified as terms are private. Petrobras plans to start production at the field in 2017 as part of its plan to double output by 2020.
Petrobras (PETR4) doesn’t comment on bidding processes, it said in an e-mailed response to questions. Modec’s office in Tokyo didn’t respond to an e-mail and phone call seeking comment. BW investor relations head Kristian Flaten didn’t respond to an e-mail requesting comment. SBM declined to comment on the tender in an e-mailed response.
“Modec and SBM, they’ve been the ones taking those contracts for the past five years,” Kristian Diesen, an analyst at Pareto Securities AS, said by phone from Oslo. “It’s very important, it’s by far the single biggest FPSO market.”
SBM rose 0.8 percent to 14.27 euros and outperformed Norway’s benchmark OBX index. Petrobras gained 0.9 percent to 14 reais in Sao Paulo at 3:34 p.m. local time.
Petrobras, trading near the lowest since 2005 in the stock market after fuel subsidies and lower-than-expected crude output disappointed investors, is shifting its focus from exploration drilling to developing existing discoveries. It has added six new production platforms since November. At the same time, the number of offshore drilling rigs in Brazil fell in December to the lowest since 2010, according to data compiled by Baker Hughes Inc., an oil services provider.
Strict requirements for locally-sourced equipment make it easier for companies that have partnerships with existing shipyards in Brazil to compete for offshore equipment, Diesen said.
“SBM’s joint venture partnership with Synergy in Brasa Shipyard at Niteroi means that we have the capacity and control over meeting local content for projects” since the yard started in 2012, Paula Blengina, a spokeswoman for SBM, said in an e-mail.
Modec is building FPSOs for Petrobras at the Brasfels shipyard in Rio state. Estaleiro TCE in Rio’s Guanabara bay listed BW as one of its clients on its website. BW has also worked with the Quip shipyard in Rio Grande do Sul.
In 2013, Petrobras’s domestic crude output fell to 1.93 million barrels a day, the lowest since 2008, according to data on its website.
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