Petrobras Suffers Losses with Modec’s FPSOs and Prohibits the Oil Giant from Participating in Its Bids

Suspension of Multinational Modec’s Participation in Competing for Petrobras Tender Will Last for 13 Months Starting March 31, 2021

March did not end very well for the oil giant Modec. The Japanese company received a notification from Petrobras that its eligibility to participate in a new tender issued by the state-owned company was suspended for 13 months starting March 31, 2021. Looking for a job? Siemens Calls for Job and Internship Openings in Its Factories in SP, BA, and RN for Candidates With and Without Experience

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According to the notification from Petrobras, the main basis for this administrative sanction is the losses incurred by the state-owned company, presumably caused by the performance of three Floating Production Storage and Offloading (FPSO) units under charter services that MODEC previously provided and/or is currently providing to the Brazilian oil company.

These FPSOs are the FPSO Cidade do Rio de Janeiro MV14, whose charter contract expired in 2019, and two FPSOs currently leased to Petrobras, namely, the FPSO Cidade de Niterói MV18 and the FPSO Cidade de Santos MV20, according to the notification.

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Administrative Sanction Does Not Impact the Execution of Current Contracts in Force Between MODEC and Petrobras

There is no expectation of new developments or implications, including for MODEC’s finances, as this administrative sanction does not impact the execution of current contracts in force between MODEC and Petrobras.

“MODEC remains committed to improving its practices to eliminate any issues in its activities under the current contracts”, the company stated in a communication.

“MODEC continues to view Brazil as its primary and most promising market, and reaffirms its commitment to the oil and gas sector, with the excellence that has always been associated with its name over more than 15 years in Brazil, along with its employees, clients, and suppliers”, concluded the Japanese company.

FPSO Leased by Petrobras and Operated by Modec Departed from China Heading to Brasfels Shipyard. About 800 Jobs Were Secured by the Japanese Company in 2020 in Brazil

Named “FPSO CARIOCA”, the MV30 was a VLCC ship from the Belgian company Euronave that was sold and converted, optimizing costs and time spent in FPSO construction. The purchase price of the ship was USD 45 million in 2017. From bow to stern, the unit measures 332 meters.