Report: SBM Offshore Only Bidder for Petrobras' Mero 4 FPSO

Marta Nogueira
Wednesday, February 24, 2021

Brazil's state-controlled oil company Petrobras received only one proposal, from Dutch SBM Offshore, in a bid to contract construction of the Mero 4 oil platform [FPSO] in the Santos Basin pre-salt, two sources with knowledge of the matter told Reuters.

Petrobras' business plan foresees Mero 4 entering operation in 2025 with a capacity to produce 180,000 barrels of oil a day.

Petrobras and SBM declined to comment.

One of the sources commented that it is the "first time in a long time that Petrobras has received only one proposal" in a bid, a sign that the platform chartering market may no longer have as much room to absorb new demands.

In January, Petrobras held the first bid for the contracting of its own platforms in more than seven years, while seeking to diversify its suppliers of production units.

On that occasion, the company received three proposals from consortia led by Keppel Corporation Ltd, Samsung Heavy Industries Co Ltd and Daewoo Shipbuilding & Marine Engineering Co Ltd, for the construction of the P-78 and P-79 platforms.

According to previous information provided by Petrobras, the Mero field is the third-largest in the pre-salt layer and is located in the Libra area, the first to be auctioned in Brazil under production sharing in 2013.

This year, Mero will receive its first definitive production platform, according to the business plan.

The area is operated by Petrobras, with a 40% stake, in partnership with oil majors Royal Dutch Shell and Total each with a 20% stake, and 10% each held by Chinese companies CNODC and CNOOC.

 (Reporting by Marta Nogueira Editing by Marguerita Choy)


Categories: Offshore Energy Industry News Activity FPSO South America Floating Production

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