Schahin files for bankruptcy

April 20, 2015

The Schahin Group filed for bankruptcy for its engineering unit as it seeks protection from creditors, according to news agency Bloomberg. Schahin holds 28 diversified companies and about US$2.12 billion in debt. However, Schahin’s oil and gas unit wasn’t included in a bankruptcy protection filing, according to newspaper Valor Economico.

Image of the Cerrado drillship. From Schahin

The situation is due to tight national and international credit markets, making financing too difficult, according to Schahin.

The company includes business lines ranging from oil, gas and other energy business lines, real estate development and engineering for housing, hospitals, and other structures, and telecommunications, among other businesses.

Its offshore oil and gas activities include investments in vessels and platforms, including the Vitoria 10000, SS Pantanal, SS Amazonia, Sertao, and the SC Lancer, among others. Schahin operates these vessels for Petroleo Brasileiro (Petrobras).

Schahin’s engineering unit is one of more than 20 companies that have been temporarily banned from bidding on new projects by Petrobras amid allegations that suppliers and builders paid bribes to inflate the value of contracts, according to a Bloomberg report.

Schahin is currently under at least two obligations with Petrobras. 

In December, Petrobras awarded Schahin and its Brazilian partner Modec, Inc. a contract to supply, charter, and for the operation of a floating, production, storage, and offloading (FPSO) vessel for the Tartaruga Verde and Tartaruga Mestica fields offshore Brazil.

According to the contract, the Modec-Schahin consortium is responsible for the engineering, procurement, construction, mobilization, installation and operation of the FPSO, including topsides processing equipment as well as hull and marine systems.

Petrobras is also using the Schahin Cerrado drillship for its Libra field off Brazil. Drilling began in August 2014 and the Brazilian company made a discovery in October at well 3-RJS-731 (NW-1) of a good quality oil in the northwestern portion of the structure.

The NW-1 is the first of two wells the Libra consortium has committed to drilling.

Petrobras operates Libra with 40% interest. Its consortium partners are Shell (20%), Total (20%), CNPC (10%) and CNOOC Ltd. (10%), with the management of the contract to Pre-Sal Petroleo SA (PPSA). 

Read more:

Petrobras picks Modec-Schanin for FPSO gig

Petrobras confirms Libra oil



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