Brazil demands 25% Local Content in building FPSO

May 16, 2021 News

…says vessel must also be designed using Petrobras’ long term strategy

One of the Brazilian’s FPSOs in the Stabroek Block.

Kaieteur News – Neighbouring Brazilian oil and gas giant Petrobras, has signed a US$2.3 billion contract with Keppel Shipyard in Singapore, to build a Floating Production Storage and Offloading (FPSO) vessel—the seventh unit to be installed in the Búzios field, in the Santos Basin.
The contract was inked on Monday last between the two parties.
Under the provisions of the arrangements entered into by the Brazilian State Oil Company, Petrobras, a requirement enshrined in the public pre-qualification document says the contract foresees compliance with Local Content of 25 percent, with services to be executed in Brazil, through a partnership or subcontracting of national companies.
Announcing the contract, Keppel Offshore and Marine (O&M), Chief Executive Officer (CEO), Chris Ong, remarked that the development aligns, “with the transformation plans which we had announced, where not all of the work will be done at our yards.”
He said too, “we are excited to partner with industry leaders like Hyundai Heavy Industries Company Ltd. (HHI) and DORIS Engenharia in Brazil, harnessing our complementary strengths and enabling Keppel O&M to expand our turn-key offerings across the value chain.”
He noted too that at the same time, “we are able to utilise our global network of operations and bring a sizeable amount of the work to Brazil, generating thousands of job opportunities for the local eco-system.”
Additionally, the Brazilian state company in putting together its request for an FPSO indicated that the supply of the FPSO must result from the Engineering, Procurement and Construction (EPC) contracting modality and from Petrobras’ strategy of developing new projects for its own platforms.
This is to be done, incorporating the lessons learned from the FPSOs already installed, including contracting and construction aspects. According to a Petrobras’ statement on Monday, the vessel boasts a processing capacity of 180 thousand barrels of oil per day and 7.2 million cubic metres of gas per day with the platform scheduled for delivery in 2024.
In a separate statement on Monday, Keppel O&M said, the value of the contract is estimated to be around $2.3 billion.
The builder said that Keppel O&M would fabricate the topside modules for the vessel, weighing 43,000 metric tonnes (MT) at its shipyards in Singapore, China and Brazil, as well as undertake the integration and commissioning works of the FPSO.
Keppel’s partner, HHI, will provide the 85,000 metres hull and the living quarters for 240 persons. Upon completion, the FPSO will transit to the Buzios field, where Keppel O&M will carry out the final phase of offshore commissioning works.
The project foresees the interconnection of 13 wells to the FPSO, six of them producers and seven injectors, through a subsea infrastructure composed of rigid production and injection pipelines and flexible service pipelines.
The Búzios field, discovered in 2010, is the largest deepwater oil field in the world. The field should reach the end of the decade with daily production above 2 million barrels of oil equivalent per day, becoming the Petrobras’ asset with the highest production.

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