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Petrobras Begins Bidding for 11 Christmas Trees at Mero Field That Can Be Manufactured in Brazil

Written by Paulo Nogueira
Published on 29/01/2019 at 12:44
Updated on 29/01/2019 at 12:58
FPSO MERO ARVORE DE NATAL PETROBRAS
Petrobras inicia licitação para 11 Árvores de Natal no Campo de Mero que podem ser fabricadas no Brasil
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With the Launch of This Bid, Petrobras Ended Up Provoking a True Titan Dispute Between TechnipFMC, Aker Solutions, and OneSubsea.

Three contractors are locked in a battle to supply the Brazilian state-owned company Petrobras with 11 highly specialized subsea trees to serve the floating production, storage, and offloading vessel Mero 2 in the pre-salt province of the Santos Basin. The bidders in the dispute include TechnipFMC, Aker Solutions, and OneSubsea, owned by Schlumberger.

It is understood that Petrobras also invited Baker Hughes to participate in the bidding, but the GE-controlled company did not submit a commercial proposal.

At the end of last year, Petrobras awarded Aker Solutions a similar contract to provide 12 subsea trees and associated equipment for the Mero 1 project, which is expected to start production in 2021 via the Guanabara FPSO. As with the Mero 1 contract, local content requirements for the Mero 2 subsea trees are high, and the winning bidder is likely to carry out the manufacturing of the equipment and services at a facility in Brazil.

Although Petrobras is requesting 11 subsea trees for Mero 2, one less than the number ordered for Mero 1, sources said the new contract is much more complex and comprehensive.

In addition to the subsea trees, the consortium led by Petrobras wants contractors to provide four subsea distribution units, three topside master control stations, as well as perform installation, commissioning, maintenance, and well intervention for a period of five years.

The subsea trees themselves will also be more complicated to build, as Petrobras stated that they must feature connectors to handle 8.5-inch diameter production lines, larger than those to be used on Mero 1. “The subsea contract for Mero 2 is similar in many respects to Mero 1, but the demand for potential workover adds an extra layer of complexity to the competition,” sources said.

“All I can say is that we presented a very competitive price and are now waiting for Petrobras to contact us.”

Petrobras is currently evaluating the proposals submitted by the trio, but the oil giant is expected to select a winner and initiate negotiations on the commercial terms of the contract in the coming weeks.

The Mero 2 FPSO will handle a total of 16 development wells, of which 11 will initially be put into operation starting in the second half of 2022.

Petrobras intends to maintain a rigid riser-based configuration for Mero 2 to cover the first 11 wells that will be connected to the floating unit, with the remaining five coming online later, likely using flexible pipes.

A tender to supply and install subsea umbilicals, risers, and flowlines to serve Mero 2 is expected to be offered to contractors in April.

Bids to supply the MPS 2 FPSO are scheduled for February 14, and the competition will likely be between Japan’s Modec, Netherlands-based SBM Offshore, and Malaysia’s MISC.

The floater will have the capacity to produce 180,000 barrels of oil per day and 12 million cubic meters of natural gas per day.

Petrobras operates Mero with a 40% stake and is partnered with Europeans Shell and Total at 20% each, along with China National Petroleum Corporation and China National Offshore Oil Corporation at 10% each.



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Paulo Nogueira

Eletrotécnica formado em umas das instituições de ensino técnico do país, o Instituto Federal Fluminense - IFF ( Antigo CEFET), atuei diversos anos na áreas de petróleo e gás offshore, energia e construção. Hoje com mais de 8 mil publicações em revistas e blogs online sobre o setor de energia, o foco é prover informações em tempo real do mercado de empregabilidade do Brasil, macro e micro economia e empreendedorismo. Para dúvidas, sugestões e correções, entre em contato no e-mail informe@en.clickpetroleoegas.com.br. Vale lembrar que não aceitamos currículos neste contato.

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