Petrobras Output in Campos Drops to Lowest Level in 17 Years
Oil production by Brazilian state-led Petroleo Brasileiro SA in the Campos basin fell 1.4 percent in June over the previous month to 1.042 million barrels a day, its lowest level since 2001, as mature fields decline, according to company data.Output has dropped 15.8 percent in 12 months due to the ageing of fields off-shore from Rio de Janeiro and Espirito Santo that account for almost half of the crude pumped by Petrobras.
AET Secures DP2 Shuttle Tankers with Petrobras
Petroleum tanker owner and operator AET announced the extension of partnership in the DP2 shuttle tanker sector with Petróleo Brasileiro S.A.(Petrobras), the Brazilian multinational petroleum corporation. "Recently we were awarded a contract to own and operate four specialist DP2 Suezmax Shuttle Tankers on long-term charter by Petrobras. These new vessels will be in addition to the two AET DP2 ships currently on charter in the Brazilian Basin for Petrobras," said a press release from the company.
Petrobras to Start Up Four New Platforms in Q4
Brazil's state-controlled oil company Petrobras will start pumping pre-salt oil from four new platforms between October and December, the company's director for production and technology development Hugo Repsold said on Wednesday.Speaking to reporters at an oil industry event, he said Petrobras could study building its own platforms after 2022 and predicted the company would head towards sustainable growth of oil production in the next few years.The four new platforms in the Santos basin are the P-67 and P-69 in the Lula oil field, and the P-75 and P-76 in the Buzios fields.
Petrobras CEO Parente Resigns
Petroleo Brasileiro SA's chief executive quit on Friday in a surprise move that wiped $12 billion off the state-controlled oil producer's market valuation, after Brazil's government responded to a national trucking strike by intervening in the company's fuel pricing policy.Pedro Parente, who in two years in the job had succeeded in slashing the scandal-plagued company's debt and restoring it to profitability, said in a resignation letter to President Michel Temer it was clear after the last week's turmoil that new talks would be needed on pricing policy."Given this situation…
Keppel O&M to Pay US$422m to Resolve Petrobras Issue
Keppel Corporation Limited (Keppel Corporation or Keppel) today confirmed that KOM has reached a global resolution with criminal authorities in the United States, Brazil and Singapore in relation to corrupt payments made by KOM's former agent in Brazil, Zwi Skornicki. As part of the global resolution, KOM has accepted a conditional warning from the Corrupt Practices Investigation Bureau (CPIB) in Singapore, and entered into a Deferred Prosecution Agreement (DPA) with the U.S.
17 Keppel Employees Pay for Petrobras Bribery Case
Keppel Corp's rig-building unit has taken disciplinary action against 17 current and former employees as part of its Brazil bribery case, a U.S. court document showed, including $8.9 million of financial sanctions, demotions and departures. The measures were revealed after the Singapore-based company agreed to pay $422 million to settle charges it bribed Brazilian officials, including some at state-run oil company Petrobras. Singapore authorities are investigating individuals involved. In the document seen by Reuters, U.S.
Rowan Buys Two Jack-up Rigs from Petrobras
Offshore driller Rowan Companies plc said it has purchased two LeTourneau Super 116E jack-up rigs, the P-59 and P-60, both delivered new into service in 2013, in a public auction from a subsidiary of Petroleo Brasileiro S.A. for $38.5 million per unit. As reported in May 2017, Rowan was the high bidder in a Petrobras public auction with a bid price of $30 million per rig. While the high bid was not accepted by Petrobras, after negotiations, both parties agreed to the revised price. Rowan sad it intends to mobilize the jack-ups to the Middle East from their current location in Brazil in late first quarter 2018. Tom Burke, President and Chief Executive Officer, said, “We consider this purchase an opportunistic investment, made near a cyclical low, at a highly attractive price.
Four Japanese Companies Join Modec in Sepia FPSO Deal
Four Japanese companies will invest in a new company established by compatriot Modec with an aim to provide a floating, production, storage and offloading (FPSO) unit for the Petrobras-operated Sepia field offshore Brazil. "MODEC, Mitsui, Mitsui O.S.K. Lines, Marubeni Corporation and Mitsui Engineering & Shipbuilding Co have agreed to jointly invest in a long-term charter business currently promoted by MODEC, for providing a FPSO in the Sepia Area, off the coast of Brazil," said a press release. These companies have entered into related agreements for the FPSO project on January 9, 2018.
Petrobras: Fire Contained on Platform in Lula Field
Brazil's state-controlled oil company Petróleo Brasileiro said on Tuesday a fire at a platform in the Santos Basin was contained and did not cause injuries or environmental damage. Production there remains halted until safety tests can be completed, the company said. The fire was discovered early on Tuesday on a floating production storage and offloading (FPSO) unit in the Lula Field. The unit is operated by Petrobras in consortium with Royal Dutch Shell and Petrogal . Reporting by Marta Nogueira
Petrobras to join Oil and Gas Climate Initiative (OGCI)
Petróleo Brasileiro SA (Petrobras) has announced its intention to join the Oil and Gas Climate Initiative (OGCI). The company revealed that its CEO, Pedro Parente, has signed a letter of engagement so that the company can become an effective member of the voluntary initiative, which aims to lead the industry response to climate change. The OGCI is the CEO-led grouping of oil and gas companies that intends to lead the industry’s response to climate change, pooling knowledge and collaborating on action to reduce greenhouse emissions.
Petrobras Settles Taxes Owed for Vessel Leasing Contracts
Brazil's state-controlled oil company, Petroleo Brasileiro SA, said on Monday it adhered to a federal tax refinancing program to settle taxes owed on vessel leasing contracts. Petrobras, as the company is known, said in a securities filing the company would pay 1.7 billion reais ($538.5 million) in 12 monthly installments beginning this month. The payments would have a negative effect of 1.1 billion reais on fourth-quarter earnings, the company said. ($1 = 3.1574 reais) (Reporting by Tatiana Bautzer; Editing by Peter Cooney)
Aker Solutions Signs Agreement with Petrobras
Norwegian oilfield services company Aker Solutions has won a contract to provide maintenance and modifications services for three platforms at Petrobras-operated oil and gas fields offshore Brazil. The four-year contract is valued at about NOK 800 million ($101.5 million) and includes an option for a one-year extension. The order covers a range of services to renovate, repair and upgrade the floating production storage and offloading platforms, or FPSOs, at the Barracuda, Caratinga and Albacora Leste fields in the Campos Basin.
Petrobras Extends DOF Deal
Norwegian shipping company DOF has been awarded an extension of a contract for one of its anchor handlers working in Brazil. "DOF and Petrobras have agreed an extension of approx. 265 days for the Skandi Admiral with start-up in 9 June 2018, hence the vessel is firm until 28 February 2019," said a press release from DOF. The initial contract for the vessel was awarded to DOF in late May 2017. Skandi Admiral is an AHTS (UT 741) built in 1999 and was reflagged with Brazilian flag last year.
Transocean Upbeat About Offshore Recovery, Despite Quarterly Loss
Drilling contractor Transocean Ltd on Wednesday expressed optimism about a recovery in offshore drilling activity this year, despite reporting its third quarterly loss in a row. Companies that provide services and equipment for oil and gas exploration and production, among the worst hit by the 2014 oil price downturn, have grown optimistic about the future as oil prices recently have bounced back. In recent quarters, companies that focus on providing services to onshore shale producers have posted the biggest gains…
Teekay Offshore Partners Up on Revenue
Teekay Offshore Partners reported fourth quarter revenue at USD 295.7mln versus USD 274.9mln year ago, registering a growth of +7.6% YoY basis. “During the fourth quarter of 2017, we generated higher cash flow from vessel operations driven mainly by the delivery and contract start-up of two of our growth projects combined with lower G&A expenses," commented Ingvild Sæther, President and CEO of Teekay Offshore Group Ltd. “Recently, we finalized an agreement and are nearing completion…
Ex-Petrobras CEO Bendine Convicted of Corruption in Brazil
Aldemir Bendine, the former chief executive of state-controlled oil firm Petroleo Brasileiro SA and Banco do Brasil, was found guilty on Wednesday of corruption charges and sentenced by a federal judge to 11 years in prison. Judge Sergio Moro ruled that Bendine used his position at Petrobras to take 3 million reais ($924,527) in bribes from construction firm Odebrecht. "The condemned took his position as CEO of Petrobras amid a corruption scandal and with the expectation that he would solve problems," Moro wrote in his ruling. Bendine's legal team did not immediately reply to requests for comment. His attorneys said throughout the trial that he was innocent and that no company received special benefits from Petrobras or Banco do Brasil under his leadership.
Production Floaters Orders Are on the Rebound
Fifteen production floaters were contracted in 2017 – 11 FPSOs, two production semis, a wellhead TLP and an FLNG – and the number of deep water projects in the near-term planning queue indicates production floater orders are set to accelerate. This is a big change from 2016 when orders for new units totally dried up and the deepwater future looked pretty bleak. Here’s a round-up of contracts awarded last year and in January 2018. Tempera FPSO - Keppel in January 2017 received a contract from Dixstone Holdings…
BW Offshore Gets FPSO Abo extension
Global provider of floating production services to the oil and gas industry BW Offshore has signed an interim extension agreement for Abo FPSO with Nigerian Agip Exploration Ltd, a subsidiary of ENI S.p.A., until 30 April 2018. The short term extension has been agreed to secure operational continuity while joint work is continuing to conclude the negotiations. Two weeks ago, BW Offshore received notice from Petrobras of the exercise of a one-year extension of the contracts relating to the FPSO Cidade de São Mateus.
Norway's DOF: OSV Market Improving
The cost of renting offshore supply vessels (OSVs), servicing oil and gas firms, will continue to rise as many ships that were mothballed up during the downturn will not return to the market, the chief executive of Norway's DOF said on Wednesday. A number of offshore vessel companies went bankrupt after oil prices plunged between 2014 and 2016, or were forced to merge with competitors to survive as oil companies cut spending for exploration and new developments. But the rates for hiring specialized vessels…
Petrobras starts production of Búzios field, Santos Basin
Petrobras started (20/4) the production of the Búzios field, in the pre-salt of the Santos Basin, through the platform P-74. Búzios is the first field in production under an Onerous Assignment regime. The P-74 is located about 200 km off the coast of the state of Rio de Janeiro, at a water depth of 2,000 meters and is the thirteenth platform to enter into operation in the Brazilian pre-salt. Due to the high production potential of Búzios, in addition to the P-74, between 2018 and 2021 four more platforms will be destined for this field…
Sevan Drilling Cleared in Petrobras Bribery Case
Noway’s anti-corruption agency Økokrim has closed an investigation into Sevan Drilling over the company’s drilling contracts won with Petrobras between 2005 and 2008. "Reference is made to the public announcement by Sevan Drilling dated 16 October 2015 regarding Økokrim's investigation of the Company's subsidiary Sevan Drilling ASA in respect of payments made to agents in relation to drilling contracts originally awarded by Petrobras to Sevan Marine ASA in the period between 2005-2008," said a press release from the company.
OSV Scrapping Rates Up 153% YTD
As the severity of the offshore energy downturn has increased and the likelihood of older vessels returning to work begins to diminish, owners have slowly come round to the importance of scrapping these vessels. According to VesselsValue, U.S. owners might be leading the way.According to VesselsValue, an online valuation and market intelligence service for the maritime and offshore sectors, in this current period of downturn, critics of offshore shipowners will say that owners have been guilty of not scrapping older tonnage in order to maintain a young and advanced fleet.
Capital Products Acquires M/T Anikitos
Capital Product Partners L.P. has announced that it has completed the previously announced acquisition of the M/T Anikitos, an eco-type MR product tanker (50,082 dwt IMO II/III Chemical Product Tanker built 2016, Samsung Heavy Industries (Ningbo) Co., Ltd.) for a total consideration of $31.5 million from Capital Maritime & Trading Corp.The Partnership funded the acquisition of the M/T Anikitos with the net proceeds received from the sale of the M/T Aristotelis, available cash and the assumption of a term loan under a credit facility with ING Bank NV of approximately $15.6 million.