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.