Petrobras Receives $149 Mln from SBM in Leniency Deal
Brazilian state-run oil company Petroleo Brasileiro SA has received an initial payment of 549 million reais ($148.92 million) from Dutch marine engineering group SBM Offshore as part of a 1.22 billion-real leniency deal, the Brazilian government said on Monday.As a result of a long-running corruption investigation, SBM was accused of paying bribes to secure contracts with Petrobras, as the state-controlled oil company is known.($1 = 3.6866 reais)(Reporting by Alexandra Alper; editing by Jonathan Oatis)
Mariner Training in Brazil: Inside the Institute of Nautical Sciences
For a long time there has been a deficit of trained maritime officers in Brazil, as for decades the only accredited training institutes were run by the Brazilian Navy, where a very limited number of prospective maritime deck and engine officers could be trained at its two training institutes in the country. That's all changing now with the Institute of Nautical Sciences (ICN) leading the way.With the discovery of the pre-salt in 2007 and the continued growth of the maritime and offshore sectors, the lack of qualified Brazilian officers became acute.
Brazil Funds Training on ShipConstructor & 3D Design
ShipConstructor Software Inc. (SSI) says it is excited to see that the Brazilian Government has funded training on SSI’s ShipConstructor software. Below is background to that decision. Brazilian shipyard Estaleiro Atlântico Sul (EAS) is one of a select group of bright lights in the Brazilian shipbuilding industry. With the downturn in oil prices and the impact of “Operation Car Wash” causing the cancellation of Petrobras projects, several Brazilian shipbuilding and offshore shipyards have shut down.
Petrobras Sees Higher Oil Exports as Presalt Fields Develop
Brazilian government-controlled Petroleo Brasileiro SA expects higher oil exports this year than initial projections, Guilherme França, executive manager of trade and marketing, said Wednesday. Petrobras expects oil exports to reach 742,000 bpd by 2021 as the company advances development of its pre-salt oil reserves, which are capable of producing lighter varieties which are demanded internationally, França said. In March, França told Reuters in an interview that the company's oil exports would reach 450,000 bpd this year. That estimate has now been revised to 503,000 bpd, according to the executive. China is the company's main client, accounting for 56 percent of Petrobras's exports in the first quarter.
Subsea 7 Loses Petrobras Contract
Subsea 7 has received an early termination of the day-rate contract for its pipelay support vessel (PLSV) Seven Mar from the state-owned Brazilian firm Petrobras. The termination is effective January 16, 2017, the company informed. The contract was due to expire next year. The Brazilian government has reportedly withdrawn the operating license for the vessel to prioritise ships within its own fleet. As a result of early termination the group backlog has diminished by approximately $106 million, Subsea 7 said on Monday. Seven Mar is 145 meters in length and has a beam of 27 meters.
Sete Brasil to seek up to $5 bln funding
Sete Brasil Participações SA presented a draft reorganization plan on Friday that includes seeking up to $5 billion in funding and downsizing business, three months after the Brazilian rig leaser sought court protection against 18 billion reais ($5.7 billion) in looming debt payments. Rio de Janeiro-based Sete Brasil is asking creditors, which include some of the world's leading shipbuilders and Brazil's largest lenders, to endorse a plan to help build between eight and 12 rigs, down from an original target of 28, Chief Executive Officer Luiz Eduardo Carneiro said in an interview.
Floating Production's Future: The 6 Things You Need to Know Now
No question that the market for new floating production systems has taken a battering. The past 12 to 18 months have been a difficult period for everyone in the business sector. Absence of new contracts has forced fabricators and equipment suppliers to make huge cutbacks in personnel and spending. But deepwater production will rebound – oil demand keeps growing -- and though the signs are mixed we see indications of the rebound starting. First some numbers about the state of the business. 261 oil/gas floating production units are currently installed on offshore fields.
Santos Port Sets Productivity Record
Brasil Terminal Portuário (BTP), began the New Year with the establishment of two new productivity records. On February 10th while working the 6328 TEU capacity MSC Geneva, 206 moves per hour (MPH) were achieved while handling 1,980 containers, representing 44 crane moves per hour (MPH), surpassing the previous record of 35 crane MPH set in January. A joint venture between APM Terminals and Terminal Investment Limited (TIL), BTP began operations in November 2013, and handled 1.14 million TEUs in 2015…
Brazil Prosecutors Charge 12 in SBM Offshore Graft Scheme
Brazilian prosecutors on Thursday charged 12 people with a bribery scheme involving Dutch firm SBM Offshore NV, the world's top leaser of oil production ships, and state oil firm Petroleo Brasileiro SA . Police said they had four arrest orders as part of the scheme, dubbed "Operation Black Blood," though two of them involved suspects already in jail in the southern city of Curitiba, the epicenter of a broader investigation into price fixing and bribery on Petrobras contracts with engineering firms. Former Petrobras executives Pedro Barusco, Jorge Zelada and Renato Duque were charged with corruption along with former SBM sales agents Julio Faerman and Luis Eduardo Campos Barbosa da Silva, according to a statement from federal prosecutors.
Brazil Gives SBM Ultimatum in $250M Bribery Settlement
Brazil has told Dutch SBM Offshore NV, the world's top oil production ship leaser, to agree soon to a $250 million bribery settlement if it wants to regain its biggest client in the world's largest oilship market, a government source told Reuters. The ultimatum gives SBM several days to sign a leniency deal that includes financial reparation and other clauses such as cooperation with a corruption investigation. The settlement, which has been under negotiation for months, would lift a ban on the Amsterdam-based firm from bidding for new business with Petrobras, Brazil's state-run oil company. A spokeswoman for SBM declined to comment on the ongoing discussions with Brazilian authorities.
Brazil to Hold New Subsalt Oil Auction by 2017
The Brazilian government plans to hold a new oil bidding round for areas in the subsalt polygon by 2017, the secretary of oil and gas at the Mines and Energy Ministry, Marco Antonio Almeida, said on Monday. Almeida denied during a presentation in Rio that the current corruption scandal plaguing state oil company Petrobras was delaying the auction being held sooner. (Reporting by Marta Nogeira; Writing by Reese Ewing; Editing by Phil Berlowitz)
Brazil: Discount Rate Unveiled for Port Auctions
The Brazilian government on Tuesday unveiled the discount rate that will be used to calculate internal rate of returns on as many as 29 port operation licenses that will be auctioned off to investors this year. In a statement, the finance ministry update the calculation for the so-called weighted average cost of capital for the upcoming port auctions to an annual 10 percent. The internal rate of return for the projects might differ from the estimate of the discount rate, or WACC, the statement added. The WACC is the rate that a company or project is expected to pay on average to debt and shareholders to finance itself. (Reporting by Guillermo Parra-Bernal
Petrobras Begins Output Test in Buzios Offshore Field
Brazilian state-run oil company Petroleo Brasileiro SA said on Thursday that it began to test output from its Buzios offshore oilfield off Rio de Janeiro in the Santos Basin. Output will be limited to 15,000 barrels a day because systems to produce natural gas are limited, the company said in a statement. Petrobras, as the company is known, said it planned to produce in the area for six months to determine the field's long-term production capacity. Petrobras expects to start regular output from Buzios in 2016 using the P-74 floating production, storage and offloading vessel when the ship's conversion from an oil tanker at a Rio de Janeiro shipyard is complete.
Shipbuilding, Repair and Conversion: Brazil's Quick Fix
The growth trend continues in the Brazilian shipbuilding industry, a trend that has been relatively constant during the last five year. While shipbuilding is ‘ship shape,’ the reality of the Brazilian ship repair industry is somewhat muddled, populated by only a few dedicated repair yards as the focus has been squarely on newbuild. On the other hand, Brazil’s ship conversion industry has enjoyed steady growth, growth directly related to orders from Petrobras, mostly to convert VLCC tanker hulls to FPSOs.
Modules for Petrobras' FPSO delivered
The "Consórcio Tomé Ferrostaal" (CTF) named consortium of Rheinmetall International Engineering, a joint venture of Ferrostaal and Rheinmetall, and the Brazilian company Tomé Engenharia have handed over two modules for the first of a series of six vessels to an international consortium led by Petrobras. "CTF" was awarded in 2012 the modules order to equip six FPSO (Floating, Production, Storage and Offloading) vessels. At the end of October, the Barge S. Tomé loaded with the Modules M8 and M10 was handed over to the integrator and successfully shipped away to its final integration destination in Angra dos Reis. The total order is worth today approx.
Brazil to Hold Next Oil Rights Auction in 2015
Brazil will hold the 13th round of its oil rights auctions in the first half of next year, a senior mines and energy ministry official said on Monday. Marco Antonio Martins, the undersecretary in charge of the oil industry at the ministry, said at an industry event in Rio de Janeiro that the auction will sell blocks under a concession system. The areas for auction will be outside the so-called Subsalt Polygon, where oil is trapped beneath the seabed by a layer of salt, and where under Brazilian law exploration can only be done on production-sharing contracts with the Brazilian government. (Reporting by Jeb Blount and Marta Nogueira; Writing by Stephen Eisenhammer; Editing by Jeffrey Benkoe)
ISS to Support Petrobras Expansion
Inchcape Shipping Services (ISS) has had its port agency and tanker husbandry services contract significantly enlarged by Petrobras. The Brazilian government-owned energy giant, which already uses ISS in Brazil, Chile, USA, Asia Pacific and China, has now requested that ISS support its expansion to 17 new port call locations in Central America and the Caribbean. ISS will handle Petrobras’ crude, clean products and LNG tankers, ensuring fast and safe turnaround of vessels in port or at terminals, ensuring all permits and clearances are in place and correct and issuance of cargo documentation.
Rolls-Royce to Open Brazilian Offshore Facility
Rolls-Royce and U.K. Chancellor George Osborne announced today that the Group will further invest in Rio de Janeiro State to better support customers in the rapidly expanding offshore oil and gas industry. A new £22 million marine facility in Duque de Caxias will be used to assemble and test large thrusters and other propulsion equipment for use on semisubmersible rigs, drill ships, FPSOs and other highly complex offshore vessels. Construction at the 27,000 sqm site will begin next month. Delivery of the first set of UUC 405 thrusters, for seven drill ships being built by Brazilian shipyard Estaleiro Atlântico Sul for Sete Brasil, will commence in June of 2015.
Chinese Soy Project in Brazil: Just an Empty Field
No signs identify a barren field in northeastern Brazil that was meant to be the center of one of China's most ambitious agricultural forays into South America. In 2011, Chongqing Grain Group Corp announced plans to build a soy crushing plant, railways and a giant inland storage and transportation hub to export goods back to China. The total price tag: $2 billion. Yet today, the company has only managed to bulldoze a 100-hectare area on which the crushing plant might one day stand. Even that project is on hold, though, and shrubs are starting to grow back on the cleared terrain. The stalled plans are an example of the difficulties facing once-promising Chinese investments here.
Petrobras Cuts Spending, Quarter Profits Fall 19%
Brazil's state-run oil company Petrobras moved to check years of missed targets, soaring costs and rising debt by scaling back near-term investments and setting a limit on long-term growth. Petroleo Brasileiro SA, as Petrobras is formally known, cut its five-year investment outlook for the 2014-2018 period to $221 billion, 6.8 percent less than its previous 2013-2017 plan, after reporting a 19 percent drop in fourth-quarter profit late on Tuesday. The company said production would still more than double to 5.2 million barrels of oil and natural gas a day (bpd) in 2020…
Port Workers Strike in Brazil
Reuetrs reported today that workers at 10 Brazilian ports began a six-hour strike in protest of an apparent move toward port privatization. Participating ports included Rio de Janeiro, Salvador and Belem, while workers at Santos, Brazil's most active commercial shipping port, did not participate. Strike organizers said a 24-hour strike has been planned for Thursday, and a general assembly meeting will be held February 4 to discuss further action. Strikers are reportedly disputing the Brazilian government’s alleged plan to allow third-party security companies to operate at the country’s ports, Reuters said. Source: Reuters, staff
Vulkan RATO for Submarine Test Rig
For decades, Vulkan has been a supplier of couplings, not only for Brazilian offshore industry, but also for military applications. Here business mainly focused on conventional drives such as diesel-electric systems for military ships and submarines. Now Vulkan is positioning itself on the Brazilian market as a system solution provider for nuclear propulsion and supply the Centro Experimental Aramar in Iperó with a RATO S 731T and 14 elastic mounts. The Brazilian government is currently planning the construction of a fleet of six submarines with nuclear propulsion.
Offshore Brazil: The Libra Field & Brazil’s Pre-Salt Policy
Brazil’s Libra pre-salt field, in Block SS-AUP1 in the Santos Basin, with estimated recoverable oil volumes of 8-12 billion barrels of oil equivalent (BOE) and in place volumes of between 25-40 billion BOE, was the country’s first pre-salt field to be auctioned. The rules governing this historical auction have been shunned by important super-majors such as Exxon Mobil, Chevron and BP and also by major players such as the BG Group and Statoil. Many industry analysts were surprised that state-owned players from China…