Brazil Subsea Contract Worth Up to $500MM

Brazil Subsea Contract Worth Up to $500MM
Petrobras has awarded TechnipFMC a "substantial" subsea contract.

Petrobras (NYSE: PBR) has awarded TechnipFMC (NYSE: FTI) (PARIS: FTI) a subsea contract for the Búzios 6-9 fields in the Santos Basin offshore Brazil, TechnipFMC reported Tuesday.

“The Búzios 6-9 fields are major developments in Brazil, and we are very honored to support Petrobras in this subsea project, which further strengthens our long-term partnership,” remarked Jonathan Landes, president of TechnipFMC’s Subsea unit, in a written statement. “This contract demonstrates TechnipFMC’s unique ability to deliver comprehensive solutions that meet clients’ needs and leverages our expertise in the pre-salt field.”

The Petrobras award calls on TechnipFMC to supply subsea trees with controls, electrical and hydraulic distribution units, topside systems, and installation and intervention support services with rental tooling, the company stated. The contract recipient also noted the Búzios 6-9 fields are located at a 6,562-foot (2,000-meter) water depth.

“Sustainability will be at the core of our project delivery,” continued Landes. “All of the subsea trees will be manufactured at our facilities in Brazil, which are powered entirely from renewable energy sources … This contract arrives only weeks after achieving our recent milestone of manufacturing and delivering 700 trees in-country – a further testament to our long-term commitment in Brazil, where local content makes up over 97% of our workforce.”

TechnipFMC calls the contract “substantial,” equating to a value ranging from $250 million to $500 million. It anticipates delivery starting in the first quarter of 2023.

Petrobras recently awarded the contract for the eighth floating production, storage, and offloading vessel that will be used to develop Búzios, which the operator has described as the world’s largest deepwater oil field.

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