Galp Sees Delays In Brazil From Petrobras Graft Probe
LONDON, March 11 (Reuters) - A widening corruption probe into Brazil's state-run oil company Petrobras is likely to delay by at least one year four major offshore oilfield projects, Portuguese partner Galp Energia said, in a first sign of strain on foreign investors.
Galp, which is involved in nearly 30 on-shore and off-shore oil and gas projects in Brazil, flagged a one-year delay in the building of production ships for the Lula Sul, Lula Norte, Lula Extremo Sul and Lula Oeste fields, which it is developing with Petroleo Brasileiro SA (Petrobras).
"We have assumed on average a one-year delay in the pre-salt projects," Galp chief executive officer Manuel Ferreira De Oliveira told investors in London on Tuesday.
"We've looked unit by unit at the state of development and conditions of the subcontractors. This was a deep exercise that the company did for itself and the level of uncertainty is still high and we are fully confident that we are conservative to say that on average we see a one-year delay."
The uncertainty is expected to lead to delays in the delivery of four locally-made floating production storage and offloading (FPSO) units after contractors have either gone bankrupt or been banned from receiving money from Petrobras due to the corruption scandal, an industry source said.
Galps' forecast comes before Petrobras issues its own guidance on project development in light of the investigation which has forced the resignation of its top management over suspicions of price-fixing, bribery and political kickbacks that have engulfed Brazil's President Dilma Rousseff.
Britain's BG last month maintained a forecast to have delivery of five FPSOs next year, but said it is "keeping a very close watch on any potential impact" from the probe.
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.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- USA EIA Hikes Up 2023 and 2024 Brent Oil Price Forecasts
- Chevron Starts Up Gorgon Extension Project
- Macquarie Group Reveals Oil Market Outlook
- Enagas Opens Logistics Bidding for Mothballed Asturias Terminal
- Eni Inks Deal to Build Hybrid Renewables-Gas Plant in Kazakhstan
- Biden Urged to Demand Climate Emergency as Smoke Chokes Washington
- ADNOC Chief: Shift from Fossil Fuel Unavoidable
- Global Oil Demand for Road Transport to Peak in 2027: BNEF
- Improved Wage Offer Ends North Sea Dispute
- Oil Down as Demand Concerns Supercede Saudi Cuts
- Saudis Remind Global Oil Market Who is King
- Saudi to Cut Output by 1MM BPD in Solo OPEC+ Move
- Data Science is the Future of Oil and Gas
- Debt Ceiling Deal Becomes Law
- What Do Latest OPEC+ Moves Mean?
- Two Main Forces Have Come Together to Pull Down Commodity Prices
- Fatality At North Rankin Complex
- North America Loses More Rigs
- Par Pacific Completes Buy of ExxonMobil Refinery
- USA Shale Seen Holding Firm on Returns
- Which Generation Is Most in Demand in Oil, Gas Right Now?
- Who Is the Most Prolific Private Oil and Gas Producer in the USA?
- BMI Reveals Latest Brent Oil Price Forecasts
- Is There a Danger That Oil and Gas Runs out of Financing?
- BMI Projects Gasoline Price Through to 2026
- What Will World Oil Demand Be in 2023?
- North America Rig Count Reduction Rumbles On
- What New Oil and Gas Jobs Will Exist in the Future?
- What Does a 2023 USA Recession Mean for Oil and Gas in the Country?
- USA Oil and Gas Supported Nearly 11MM Jobs