Contracts for pre-salt FPSO topside modules get go-ahead

pre salts FPSOsJULY 20, 2012 — Petrobras subsidiaries Tupi BV and Guará BV, together with consortium members BG Group, Petrogal Brasil, and Repsol Sinopec Brasil SA, have given the go-ahead for ten contracts totaling US$4.5 billion for the construction of the first six topside modules (processing plant, utilities and living quarters) for eight identical ("Replicant") FPSOs (floating, production, storage and offloading units) to be constructed in Brazil for pre-salt projects in Santos Basin blocks BM-S-9 and BM-S-11.  The contracts will be signed in the next few days.

The following companies will be awarded contracts: DM Construtora de Obras Ltda/TKK Engenharia Ltda, IESA Oleo e Gas S.A., Tome Engenharia S.A./Ferrostaal Industrieanlagen GmbH, Keppel FELS do Brasil S.A., Jurong do Brasil Prestação de Serviços Ltda and Mendes Jr Trading Engenharia S.A./OSX Construção Naval S.A.

The "Replicant" FPSOs are part of the first development phase agreed by the consortia for blocks BM-S-9 and BM-S-11. Contracts for a further two topside modules and integration packages are expected to be awarded to the same companies within the next eighteen months.

The BM-S-11 consortium opted for a competitive tendering procedure for at least one additional FPSO, to be chartered for use in areas requiring processing plant different from the facilities provided by the "Replicant" FPSOs.

The BM-S-11 consortium is operated by Petrobras (65%), in partnership with BG E&P Brasil Ltda (25%), and Petrogal Brasil (10%). The BM-S-9 consortium is operated by Petrobras (45%), in partnership with BG E&P Brasil Ltda (30%), and Repsol Sinopec Brasil (25%).

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