Issues With Kerui Method Delay UPGN Works at Gaslub Hub, and Petrobras Evaluates Postponing Delivery of Rota 3 Project

Petrobras Is Now Considering Delaying the Start of Project Rota 3 After Issues Caused by the Mass Dismissal of Workers from Kerui-Método at the UPGN Works in the Gaslub Pole, Which Is Now Facing Issues Regarding Scheduled Deadlines.

Petrobras is re-evaluating the delivery date of Project Rota 3, as the Kerui-Método consortium delayed the construction of the Gas Processing Unit (UPGN) at the Gaslub Pole, in Itaboraí, Rio de Janeiro. Thus, the state-owned company will not be able to meet the previously scheduled deadlines, and the mass dismissal of workers threatens the timely delivery of the project.

Petrobras Reassesses Delivery Date of Project Rota 3 After Delays in UPGN Works at Gaslub Pole Due to Internal Issues with Kerui-Método

This week did not start well for Petrobras, which is experiencing some problems in carrying out its Project Rota 3, which includes the Rota 3 pipeline and the UPGN at the Gaslub Pole. This is happening because Kerui-Método, the consortium responsible for the construction of the gas processing unit, recently made a mass dismissal of over 2,000 employees. 

Thus, with the lack of workers to continue the project, the construction sites are stalled, and currently, only preservation activities for equipment and facilities are being carried out. Therefore, the delivery schedule for the UPGN to continue the completion of Project Rota 3 has failed, and Petrobras is currently going through a period of instability, as it needs to assess a possible postponement of the final dates for the delivery of the structures. 

Project Rota 3 is a major Petrobras undertaking for the natural gas market in Brazil and includes the Rota 3 pipeline and the UPGN at the Gaslub Pole, in addition to other necessary structures for its operation.

It will be responsible for a large part of the fuel flow in the region, as it will have a capacity of approximately 18 million m³ of gas per day. Meanwhile, the UPGN will have the capacity to process approximately 18 million m³ of gas per day, making it one of the major highlights in the fuel market in Rio de Janeiro. 

Delivery of Project Rota 3 Was Scheduled for the Second Half of 2022, but Delays in UPGN Works by Kerui-Método Put the Date at Risk

Petrobras’s initial deadlines for the delivery of Project Rota 3 were quite close, as the company intended to deliver the production, processing, and transport of natural gas still during the second half of 2022. However, the issues with Kerui-Método and the UPGN construction project may cause this final deadline to be altered by the state-owned company. 

Thus, the oil company is analyzing a new date and, according to an official statement from the state company, “Petrobras has made every effort to avoid the stoppage and is evaluating actions to minimize the impacts on the completion of the works. The newly estimated date for the asset’s operation will be disclosed after the relevant evaluations are completed.” Additionally, the company addressed rumors of issues with the contract with Kerui-Método and stated that all processes are up to date with the consortium. 

However, there are problems related to the UPGN project at the Gaslub Pole, as the state-owned company became involved in disagreements regarding the prices of the works, which were initially estimated at around R$ 2 billion, but Kerui-Método ended up increasing the final amount to over R$ 3 billion, causing a budgetary issue with Petrobras.