Petrobras: US$2bn to up Campos Output by 35%

Brazil's federal energy company Petrobras (NYSE: PBR) will spend 6.3bn reais (US$2bn) to build two platforms and one floating production, storage and offloading (FPSO) vessel and refurbish another FPSO, the company said in a statement.

These actions should increase oil and gas output capacity in the Campos basin by 420,000 barrels a day (b/d) by 2008, it said.


The 2.3bn real P-51 will be the first semi-submersible platform to be completely built in Brazil. It will start operations on the Marlim Sul field by August 2007 and will have capacity to produce 180,000b/d and 6 million cubic meters a day (mcm/d) of natural gas.

Fels Setal/Technip, made up of Brazilian, Singaporean and French capital, will build the platform and integrate its different units, while Britain's Rolls Royce will provide the power generation module and US company GE Energy, formerly Nuovo Pignone, will provide the gas compression module.


Like the P-51, construction of the 2.4bn real P-54 FPSO was split into three different contracts. Singapore's Jurong Shipyard will convert the Barao de Mauá tanker into the structure, GE Energy will provide the generation module and US company Dresser Rand will provide the gas compression module.

The P-54 has the same production capacity as the P-51, and will start operations on the Roncador field by November 2006.


Brazilian engineering company GDK will refurbish the P-34 FPSO vessel for 265mn reais. The vessel will have capacity to produce 60,000b/d and is scheduled to be in place on the Jubarte field, in the so-called Whale Park, by July 2005.

The vessel was originally built in Holland and was incorporated into the Petrobras fleet in 1959. It was converted into an FPSO in 1993, after being the first Petrobras tanker to be converted into a platform in 1979.


Brazilian engineering companies Odebrecht and Ultratec will build the main part of the PRA-1 re-pumping platform. Argentina's Techint will build the jackets and other components, Rolls Royce will build the generation modules while Switzerland's Sulzer will supply the pumps. The PRA-1 will cost 1.34bn reais and will have capacity to pump 815,000b/d and 1.9mcm/d of gas. Platform construction is scheduled to conclude in April 2006, and is part of the PDET Campos basin master plan.

The Campos basin currently produces 1.2mb/d, or about 80% of Petrobras' domestic oil and natural gas liquids output. The new platforms are part of a plan to make Brazil self-sufficient in oil by 2006 and increase total output by 40% to 2.3mb/d in 2010.

The three oil and gas production platforms will operate at water depths of 1,300m and over 100km from shore.

Apart from the P-54 that will be partly build in Singapore, the construction and engineering works of the platforms will be carried out in Brazil while at least 60% of equipment needs will be contracted out to Brazilian companies.

GE Energy will build the compression and generation units at its facilities in Niteroi, Rio de Janeiro state, which will require spending US$70mn to US$80mn in Brazil to guarantee local supplies of parts for the three contracts it currently holds.

Besides the P-51 and P-54, GE Energy will also supply the gas compression module for the P-52 that was contracted late 2003.

"Brazil is certainly attracting a lot of interest from the oil industry," Cleber Bastos, GE Energy's oil and gas Brazil manager, told BNamericas. "There is large potential for new projects that will raise companies' interests in fixing their roots in the country."

GE Energy expects that its 2005 budget will be similar to this year's.

The local content requirement is part of a government strategy to support the domestic shipbuilding industry, which includes financing from the national development bank BNDES.

President Luiz Inácio Lula da Silva announced Thursday that the national development bank will also make US$11.72bn available to finance the sector though 2007. In 2004, US$120mn will be disbursed, and US$800mn each disbursed in 2005 and 2006, O Globo news service reported.

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