FPSO Contract Suspension Could Cost Petrobas US$15-bln

Posted by George Backwell
Tuesday, July 08, 2014
FPSO: File photo

Profit at Petrobras, Brazil's state-led oil company, could be reduced by $15 billion between 2014 and 2018 if it had to suspend oil platform contracts with Holland's SBM Offshore NV, the company said in a securities filing.

The potential reduction in profit is based on an estimate of the amount of lost oil and natural gas output and additional spending needed if Petrobras had to stop using the floating oil production platforms leased from SBM, it said in the Saturday filing.

The estimate was made in response to a request by Brazil's Office of the Comptroller General (CGU), Petrobras said in the filing. The CGU is the Brazilian federal-government agency responsible for the protection of public property.

SBM is the subject of investigations in Brazil, the Netherlands and the United States over the alleged payment of $250 million in bribes in Africa and South America, with $139 million of that allegedly paid in Brazil.

The Comptroller General's office opened an investigation into SBM's contracts with Petrobras in April.

Petrobras, formally known as Petroleo Brasileiro SA , added that the losses are hypothetical and that the Comptroller General has not recommended that contracts with SBM be suspended.

SBM, based in Schiedam, the Netherlands, is the world's largest leaser of floating production, storage and offloading, or FPSO, vessels. FPSOs are used to produce oil in deepwater offshore fields.

The company has 15 leased FPSO and related vessels, with six operating in Brazil, according to its website.

(By Jeb Blount)

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

GasLog Acquires 2 BG Group's Carriers

GasLog Ltd. completed the acquisition of two LNG carriers from Methane Services Limited (“MSL”), a subsidiary of BG Group plc (“BG”), which was previously announced on December 22, 2014.

Radio Holland bags Ahrenkiel Contract

Ahrenkiel Steamship GmbH & Co. KG and Radio Holland Germany GmbH, part of Imtech Marine, have agreed a long-term maintenance agreement for the entire Ahrenkiel Steamship fleet,

Chevron's Kirkland to Retire

Chevron Corporation confirmed today that George L. Kirkland, vice chairman and executive vice president, Upstream, will retire from the company, effective June 15.

Contracts

Radio Holland bags Ahrenkiel Contract

Ahrenkiel Steamship GmbH & Co. KG and Radio Holland Germany GmbH, part of Imtech Marine, have agreed a long-term maintenance agreement for the entire Ahrenkiel Steamship fleet,

Chevron's Kirkland to Retire

Chevron Corporation confirmed today that George L. Kirkland, vice chairman and executive vice president, Upstream, will retire from the company, effective June 15.

Seaspan Acquires 7th SAVER Boxship

Seaspan Corporation announced today that it accepted delivery of a 10000 TEU containership, the MOL Beacon. The new containership, which was constructed at Jiangsu Yangzi Xinfu Shipbuilding Co.

Legal

GasLog Acquires 2 BG Group's Carriers

GasLog Ltd. completed the acquisition of two LNG carriers from Methane Services Limited (“MSL”), a subsidiary of BG Group plc (“BG”), which was previously announced on December 22, 2014.

Radio Holland bags Ahrenkiel Contract

Ahrenkiel Steamship GmbH & Co. KG and Radio Holland Germany GmbH, part of Imtech Marine, have agreed a long-term maintenance agreement for the entire Ahrenkiel Steamship fleet,

Chevron's Kirkland to Retire

Chevron Corporation confirmed today that George L. Kirkland, vice chairman and executive vice president, Upstream, will retire from the company, effective June 15.

Finance

OOCL Orders Six Ultra-Large Container Ships

Orient Overseas (International) Ltd. has placed a new order for six mega 20,000 teu container ships from South Korean shipbuilder Samsung Heavy Industries Co. for US$951.

Wan Hai Profits Up

Asian container operator Wan Hai Lines Ltd sees 2014 profit jump as revenue grows faster than costs.   The Taiwanese container carrier recorded a profit of TWD5.

DP World to Develop Maldives Ports

Dubai-based port operator DP World has signed an agreement with the Maldivian government to develop the archipelago’s ports and logistics industry.    Maldives' tourism minister,

Fuels & Lubes

U.S. Submits Formal Plan for Paris Climate Talks

The United States on Tuesday formally submitted its climate change strategy to the United Nations, outlining domestic measures it is taking to achieve up to a 28

Shipbuilding: Mitsui Delivers Bulk Carrier

Mitsui Engineering & Shipbuilding Co., Ltd. (MES) completed and delivered a 56,000 dwt type bulk carrier M.V. Desert Osprey (MES Hull No. 1862) at its Chiba Works

Palfinger Chooses NAMJet Waterjets

Netherlands-based Palfinger Boats has launched the first of two Damen-designed FRSQ 1200 fast-rescue/oil response vessels.   Built in Harderwijk, Netherlands,

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Port Authority Salvage Ship Electronics Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3952 sec (3 req/sec)