McDermott Leads Petrobras Tender for Services in the Sépia Field

The Contractor Submitted A Lower Bid Of US $ 294 Million For The Supply Of Rigid Risers For Petrobras Activities In The Pre-Salt Of The Santos Basin

McDermott submitted the lowest bid in a Petrobras auction to contract a rigid riser-based system for the Sepia field in the pre-salt province of the Santos Basin in Brazil. Sources said the U.S. contractor offered a commercial bid of around 1.09 billion reais (US $ 294.5 million) to carry out engineering, procurement, construction, and installation of a set of seven wells to be connected to the FPSO Carioca.

McDermott outperformed rival contractors by a very slim margin. Subsea 7 and TechnipFMC finished in second and third places, with bids of 1.11 billion reais and 1.15 billion reais, sources said.

Italy’s Saipem also participated in the bidding but came in fourth after presenting a bid of approximately 1.4 billion reais. Other contractors, including Sapura Navegacao and Allseas, were also expected to participate in the tender but withdrew for other reasons.

Recomendado para você

Oil and Gas

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

The Technical Agenda and the Fair in the City of Macaé Should Boost Discussions on Investments, Energy Transition, and Development of the Oil, Gas, and Energy Chain in the National...

Paulo Nogueira

1

“It seems that the prices offered in the auction were very low. It is now up to McDermott to prove that it can complete the work on time and within budget,” said a source from a rival competitor.

Petrobras is now expected to engage in exclusive negotiations with McDermott.

Bidding Rules

The bidding rules state that the winning contractor will have up to 1000 days to deliver and install all subsea equipment after the agreement is signed.

The package of subsea umbilicals, risers, and flowlines for Sepia covers rigid steel pipes to be installed in the lazy wave formation, with rigid jumpers, pipe termination units, and flexible joints.

The SURF system to be provided by the winning bidder will cover less than half of the 15 wells that will be linked to the FPSO Carioca.

A second development phase may be undertaken in the future, potentially with the use of a new generation of flexible risers.

Japanese floaters specialist, Modec is tasked with providing the FPSO Carioca, which is under construction at Cosco Shipping Heavy Industries in China, and is expected to produce from Sepia in the second half of 2021.

The floater will be capable of handling 180,000 barrels per day of crude oil and 6 million cubic meters per day of natural gas.

Bidders expect Petrobras to offer new SURF opportunities related to other pre-salt projects in the coming months.

The national company is already in negotiations with contractors regarding the rigid riser-based solution for the Mero 1 project.

McDermott was initially seen as being in command of this work as well, but a recent conversation suggested that another candidate may be back in the running.

Sources said: “If this contract is not signed in January, there is a risk that first oil could be delayed beyond 2022”.

Other Projects And Bids

The national company is already in negotiations with contractors regarding the rigid riser-based solution for the Mero 1 project.

Contractors are also on standby for the launch of riser auctions for the Mero 2 and Búzios 5 developments, possibly in March or April.

“I believe Petrobras will continue with rigid risers for these two projects as well,” said a source.

Subsea contractors are seeking international oil companies for future contracts in Brazil. Norway’s Equinor has initiated a pre-front-end project and engineering selection process for the joint development of the Carcará pre-salt and North Carcará.