Offshore staff
SINGAPORE – In its latest quarterly Floating Production Systems Report, Energy Maritime Associates (EMA) reviewed the market for floating production systems.
In 1Q 2021 there have been three FPSO awards, which is the same as there were for all of 2020.
EMA expects the pace of awards to increase toward the end of 2021 and has identified 29 projects (including 14 FPSOs and five production semis) that are most likely to be sanctioned in the next 12 months. This assumes continued management of the global COVID-19 pandemic and oil prices remaining in the $60s.
There has been limited competition for recent Petrobras FPSOs, according to the report.
For Parque Das Belais, Petrobras received two bids for a 2019 tender (from Yinson and Bluewater / Saipem) with no award. A new tender was issued in October 2020 with bids due in May 2021.
In September 2020, Petrobras stated that there was only one available contractor and entered direct negotiation with SBM Offshore for Buzios 6.
In February 2021, SBM Offshore submitted the only bid for Mero 4.
The report noted revisions in contracting strategy. EMA said it is tracking revisions in Petrobras’ contracting strategy including a move back to more EPC contracts and alternatives to a leased FPSO. The EPC model was recently approved for Buzios 7 and 8, and the BOT (build, operate, transfer) model is under consideration for future projects. It is likely that Deepwater Sergipe could be the first BOT.
Earlier this month, Petrobras suspended MODEC from bidding on new projects for 13 months as a sanction for: “failure to meet operational performance expectations on the charter and service contracts of the Cidade de Niteroi, Cidade de Santos and Cidade do Rio de Janeiro FPSOs.” These are leased units that began operation in 2007-2009.
While MODEC is restricted from bidding through April 2022, according to EMA, it is unlikely that the company would have participated in these tenders in any case. MODEC does not expect any financial impact from these sanctions as they do not involve operating units. Its last tender submission was for the Marlim FPSOs, which was awarded in October 2019.
MODEC currently has a backlog of seven FPSOs (including four for Petrobras) with deliveries through 2024.
04/22/2021
