Kerui Method Delays Payment and Comperj Equipment Stays Idle at Rio Port

Structures of UPGN, from Comperj Are Stuck at the Port of Rio. Company Responsible for Transporting “Secure” Equipment Due to Lack of Payment

With more than 50 days stuck at the Port of Rio de Janeiro, the modular structures of the natural gas processing unit (UPGN) at Comperj are held due to lack of payment. Comperj: Petrobras Implements Testing for Covid-19 in Over 4,000 Workers on GasLub Construction in Itaboraí

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According to information provided to Petróleo Hoje, the Kerui Método Consortium (KM) – responsible for the works at Comperj in Itaboraí (RJ) – did not pay the logistics company responsible for transporting equipment by barges.

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The projects at Comperj were reduced due to the pandemic; not only Petrobras but all oil companies will slow down, affecting jobs throughout the supply chain in the sector.

The stoppage of the construction works of the Natural Gas Processing Unit (UPGN) at Comperj by the consortium formed by the Chinese Kerui and the Brazilian Método Engenharia will have severe consequences in the region, possibly leading to mass layoffs.

In early May, a letter was sent to suppliers of the UPGN construction warning that the scenario would prevent it from fulfilling “certain obligations” and that, therefore, it would negotiate rescheduling payments.

In the letter sent to suppliers, Kerui blames the pandemic and worries Brazilian companies involved in the UPGN construction project, providing equipment and services, in addition to alarming national companies that are already creditors of the project.

According to Kerui, the consortium will prioritize payments to Chinese and foreign supplier companies. Another blow like this could mean the bankruptcy of these Brazilian companies and an increase in unemployment.

Without the delivery of equipment, a kind of “snowball” effect is created, since, without its arrival at Comperj, Petrobras cannot take measurements and therefore cannot release payments to Kerui.

The Integrated Project Route 3 will provide the third route for the flow of natural gas from the pre-salt. The project consists of the Natural Gas Processing Unit (UPGN) that will have a capacity to process up to 21 million m³ per day. In addition to the UPGN, the project includes the construction of a gas pipeline approximately 355 km long, with 307 km of offshore section – already constructed – and 48 km of land section, which is under construction, and will transport natural gas from the Pre-Salt Polo of the Santos Basin to the UPGN.

Progress of Works at Comperj

Petrobras issued a statement informing that the Municipal Government of Itaboraí authorized the increase of the workforce at the GasLub construction sites from 30% to 65% of the total that was active before the pandemic.

The state-owned company states that in light of the situation, the schedule of the works will be reassessed, as approximately 2,100 workers remain temporarily away from local activities, which represents 35% of the workforce that was previously mobilized.