P-54 Cost 30% More Than Planned

Brazilian federal energy company Petrobras (NYSE: PBR) paid 30% more to build the P-54 oil platform than planned, company E&P director Guilherme Estrella told journalists in Rio de Janeiro.

Construction originally was to have cost US$650mn under the contract signed with Brazilian shipyard Mauá Jurong, but eventually rose to US$900mn.

P-54 was delivered 41 months after it was ordered, eight months longer than originally planned, Estrella said during the P-54 inauguration.

"The world of oil is not the same as it was 40 months ago. Steel prices rose and services, salaries and exchange rates have had a negative impact on prices," Estrella said.

Prices may start declining next year, Estrella said, adding construction timeframes also could get back on track.

"We propose building a platform in 37 or 38 months. The 33-month timeframe was not unfeasible but rather challenging," Estrella said.

P-54 will start producing oil in October, reaching its 180,000b/d production peak in mid-2008.

Visit BNamericas to access our real-time news reports, 10-year archive, Fact File company database, and latest research reports. Click here for a Free two week trial to our Latin America Oil & Gas information service.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Well Test / Flowback Operator
Expertise: Production Operator|Well Control|Well Servicing & Testing
Location: Denver, CO
Wireline Engineer - Pump Down Perforating
Expertise: Perforation|Wireline
Location: North Dakota, 
Driver - CDL Class A with Hazmat & Tanker for Oilfield Chemicals
Expertise: Stimulation |Truck / HGV Driver|Well Servicing & Testing
Location: Independence, KS
search for more jobs

Brent Crude Oil : $51.6/BBL 0.69%
Light Crude Oil : $49.23/BBL 0.78%
Natural Gas : $3.07/MMBtu 0.96%
Updated in last 24 hours