Petrobras May End Local Content Requirement in Mero Risers Bidding

Written by Renato Oliveira

Published on 06/05/2019 at 17:10

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Petrobras Is Holding A New Bidding Process For The Hiring Of Umbilicals In Parallel, But This Time Without A Minimum Nationalization Index, Which Means That The Risers Will Be Entirely Imported

Petrobras, the leader and operator of the Libra consortium, is promoting, along with the original bidding process, another for supplying the steel lines (STU, in English) for the Mero field without a minimum local content requirement.
It is worth noting that the ongoing bidding process stipulates 40% nationalization and that initially the index was 55% but was eventually reduced.

This means that the 59,350 km of umbilicals can be fully imported. The bidding process also foresees the provision of monitoring and testing services.
According to the notice, the contract will be for two years and the delivery of the equipment will be made through the Porto do Açu, in São João da Barra (RJ), or at the Vitória Terminal (Bavit), in Espírito Santo.

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Uniqueness Of The Equipment

As it is the first time Petrobras uses the STU in its projects, as it normally used thermoplastic umbilicals, the process will have suppliers without technology qualification with the state-owned company, which may lead to future problems regarding the bidding process.

Suppliers respond that since the qualification of umbilicals is an expensive process and given the high degree of uncertainty regarding the future use of the equipment in new projects, it has become difficult to justify the investment in their qualification.

What is practiced in the market is that, with the qualification requirement imposed by operators, manufacturers are authorized to include it in the project price and to carry it out during the execution of the contract.
According to Petrobras, STU umbilicals have already been used in their projects and the technology is widely used in the market.

The bidding process is expected to have candidates such as: Aker Solutions, Prysmian, TechnipFMC, Oceaneering, MfX, and Nexans, and currently in the country, only MxF, Prysmian, and Oceaneering have umbilical factories, respectively in Salvador (BA), Vila Velha (ES), and Niterói (RJ).
The delivery date for proposals was initially set for last Thursday (2/5), but has been postponed to today, Monday (06/5).

The Libra consortium is formed by Petrobras, which is the operator with 40%, Shell (20%), Total (20%), CNOOC (10%), and CNPC (10%), and the first oil from the area is scheduled for 2021.
In Addition To This Umbilical Bidding Process, Petrobras Also Has Others Underway, such as risers for the Roncador fields and for the Long Duration Test (TLD) of Forno and Atapu.

Petrobras Announces Alpha Star Rig From Constellation As Leader In Bidding! Click Here And Read!

Petrobras May End Local Content Requirement in Mero Risers Bidding

Petrobras Is Holding A New Bidding Process For The Hiring Of Umbilicals In Parallel, But This Time Without A Minimum Nationalization Index, Which Means That The Risers Will Be Entirely Imported

Uniqueness Of The Equipment

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Petrobras May End Local Content Requirement in Mero Risers Bidding

Petrobras Is Holding A New Bidding Process For The Hiring Of Umbilicals In Parallel, But This Time Without A Minimum Nationalization Index, Which Means That The Risers Will Be Entirely Imported

Uniqueness Of The Equipment

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