Petrobras Setbacks Threaten 2014 Oil Production Targets
RIO DE JANEIRO, April 4 (Reuters) - Brazilian state-run oil company Petroleo Brasileiro SA suffered a setback in its effort to boost oil output last month when Italian contractor Saipem SpA dropped a 2.3 km steel pipe into the Atlantic Ocean.
On March 16, rigging failed as it was being used to wrangle the pipe into position on a floating oil platform. The high-grade, metal-alloy tubes plunged about 1,800 meters (5,900 feet) to the seabed, a total, crumpled loss.
The pipe itself was worth about $2 million, but the cost of the accident will be much higher, two sources with direct knowledge of the situation told Reuters.
By setting back efforts to expand Roncador, Brazil's No. 2 oilfield, by at least a month, Petrobras will lose tens of millions of dollars in oil output, salaries and equipment leases when it can least afford it.
The accident was the latest in a series of setbacks as Petrobras has struggled to transform giant new offshore discoveries into increased output, despite a $221 billion five-year investment plan.
"The series of management and engineering problems the company faces is flabbergasting," said Cleveland Jones, a professor and researcher with Brazil's National Petroleum and Gas Institute at the State University of Rio de Janeiro.
"This may have been an unfortunate accident, but it comes as the company's organizational problems are becoming more evident."
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Operates 34 Offshore Rigs
Manages 10 Offshore Rigs
- Exxon, Petrobras Form Alliance To Develop Oil, Gas Projects (Dec 14)
- Natural Gas In Petrobras Pipelines Up About 23% In 2017 (Dec 05)
- Petrobras CEO Says To Discuss Refining Partnership With CNPC CEO (Nov 15)
Company: Saipem more info
Manages 13 Offshore Rigs
- Sanction-Proof Oil Rig Beats US Policy From Cuba to Russia (Dec 19)
- Ifax: Saipem To Conduct Feasibility Study On Rosneft Chemical Plant (Sep 15)
- Saipem to Build Pipelines for Kuwait Refinery Project (Aug 16)