Petrobras to Sign over US$1bn in Rig Contracts Thursday

Brazil's federal energy company Petrobras will sign contracts Thursday (June 17) worth over US$1bn for the construction of at least three platforms, moving ahead with plans to expand oil production 40% to 2.3 million barrels a day (mb/d) by 2010, local press reported.

The contracts to be signed include refurbishing of the P-34 platform, newspaper Gazeta de Vitória reported.

Contracts for the construction of the P-51 platform and the P-54 floating production, storage and offloading (FPSO) vessel are also expected to be formalized, a source close to one of the contractors told BNamericas.

Brazilian engineering company GDK won an US$88mn contract to refurbish the P-34 platform-ship that will be located in Jubarte field in the Campos basin, Gazeta de Vitória said.

Petrobras and the FSTP consortium of Fels Setal and Technip won the US$639mn contract to build the 180,000b/d P-51 platform that will produce oil from the Marlim Sul field in Campos basin beginning in 2008.

GE Energy, formerly Nuovo Pignone, won the US$50mn contract for the gas compression unit and Britain's Rolls Royce won the bid for the power generation unit.

Petrobras will also likely sign the contract for the P-54 FPSO, which will also have capacity for producing 180,000b/d on Campos basin's Roncador field beginning in 2006. The bids made in April for the P-54 FPSO were: Singapore shipbuilders Jurong (US$629mn), a group led by Brazilian engineering firm Andrade Gutierrez (US$645mn), Fels Setal/Technip (US$720mn), and Brazilian group Queiroz Galvão (US$930mn).

GE Energy is expected to win a US$60mn contract for the gas compression modules for the P-54 unit, a source close to the negotiations told BNamericas.

Petrobras reportedly has plans to invest as much as US$2.8bn for new platforms over the next five years, part of its US$7.7bn/y strategic plan for 2004 to 2010.

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