FloaTEC Submits Bid for $1.1B Papa-Terra Platform Tender

Offshore and Marine unit Keppel FELS and its joint venture partner J. Ray McDermott have submitted a bid to construct an oil platform for Petrobras' Papa-Terra heavy oilfield project, located offshore Brazil in the Campos Basin, reports Dow Jones Newswires.

The JV partners have formed a separate company, FloaTEC, to secure the Brazilian oil giant's P-61 oil platform contract, the estimated value of which is $1.1 billion. Other companies reportedly vying for the chance to build the platform include Modec and SBM Offshore.

In January 2009, Petrobras and its consortium partner Chevron nixed the first set of tenders for the construction of the P-61 and P-63 production platforms due to unfavorable market conditions. Since the cancellation, Petrobras reevaluated the project and relaunched a new round of tenders, according to industry sources but not officially confirmed by Petrobras.

Speaking to Dow Jones, a Keppel spokesperson noted, that "Presently, the winner of the P-61 contract has yet to be confirmed, and we expect to engage in further discussions with Petrobras over the coming weeks."

In 2005, Petrobras declared the commercial potential of its Papa-Terra field. The field is located in Block BC-10 and has estimated potential recoverable oil volumes between 700 million and 1 billion barrels of oil equivalent. 

Company: Chevron Corporation more info
 - Oil Producers Want New Hearing on Impact of Magellan Proposal (Jan 17)
 - Exxon, BP Targeted in NYC Suit That Relies on 'Nuisance' Theory (Jan 10)
 - Angola LNG Production Setback Prompts Tender Cancellation (Jan 08)
Company: Keppel FELS more info
 - Keppel FELS Delivers Floatel Triumph, Upcoming Work at Wheatstone Field (Sep 30)
 - Asia Oil, Gas Layoffs Mount as Industry Recovery Stays Elusive (Sep 08)
 - Keppel FELS Delivers Jackup UMW Naga 8 to Malaysia's UMW Oil & Gas (Sep 02)
Company: J. Ray McDermott more info
 - J. Ray McDermott Says Hello to New CFO (May 12)
 - J. Ray McDermott Secures Fabrication Contract on Gorgon Project (May 06)
 - J. Ray Reels in Second Subsea Gig in Vietnam (Apr 06)
Company: MODEC International more info
 - Shell Extends MODEC's Contract for FPSO Fluminense to December 2020 (Sep 02)
 - Keppel's BrasFELS Completes Project for MODEC's FPSO (Jun 29)
 - McDermott Joins 14 Other Offshore Firms to Establish Industry Standards (May 19)
Company: SBM Offshore N.V. more info
 - Ex-SBM Executives Plead Guilty In US To Petrobras Bribe Charges (Nov 09)
 - SBM Offshore, Repsol to Get $247 Million in Yme Insurance Settlement (Jul 17)
 - Weak Oil Pushes SBM Offshore To Axe More Jobs (Aug 10)
Company: FloaTEC more info
 - Floatec Installs P-61 TLWP in Papa Terra Field in the Campos Basin (Apr 10)
 - Chevron Taps FloaTEC for Big Foot ETLP (Dec 10)
 - FloaTEC Inks LOI with Petrobras for P-61 Platform (Oct 09)