• Succeed in the world's largest deepwater market.
  • Accelerate time to market.
  • Reduce market development costs and risks.
  • Your business development partner in Brazil.
  • Rio de Janeiro
  • Tam International
  • Inox Tech
  • K&B Industries
  • Luminell RLX
  • Rio de Janeiro
  • OpenField Technology
  • Rio de Janeiro
  • VFL Energy
  • BEA
  • Chero Piping

News

Manufacturers prepare to meet new Petrobras requirements in future pre-salt projects

04/01/2018


By Roberto Francellino Last updated Jan 3, 2018
Share
As in other segments of the offshore oil and gas goods and services chain, umbilical suppliers are experiencing a time of uncertainty about demand for the product in the coming years. However, there is also a technological component to the calculations.
As previously reported by Brasil Energy, Petrobras has already indicated it will use steel pipes in future pre-salt projects – starting with the Libra Pilot – leading equipment manufacturers to begin preparations to satisfy the new requirements.
However, in addition to doubts as to the specifications, suppliers fear the risk jumping into an investment in technological qualification without the guarantee of new contracts.
Each project has its peculiarities. said an executive with business in this field. No single project structures a company.This is the market dilemma with Petrobras today. We are not clear about what the oil company wants to do, he said.
The manufacturing of this product line in the country is not, however, an unprecedented feat. Oceaneering, for example, produced steel pipe in Brazil for the Frade field, operated by Chevron in the Campos Basin. In addition to the American company, umbilicals in the country have been placed by MFX and Prysmian. Together, these firms have been involved in practically all of Petrobras’ offshore Brazilian ventures.
Soon, however, they may gain a new competitor, especially if the umbilicals are included by Petrobras in calculating the local content waiver of their future pre-salt projects: Norwegian multinational Aker Solutions.
We are interested, logically, in penetrating this market, said the company’s global CEO, Luís Araújo, in an exclusive interview with Brasil Energy last October.
Mero
Uncertainties aside, the fact is that Petrobras intends to launch in the first quarter of the year the contracting of umbilicals for Libra and Sepia, in the Santos Basin pre-salt region.
Quantities and specifications are in the final stages of preparation, the company reported.
The technological challenges of the umbilical industry are related to the concerns about cost reductions, including the life cycle of the subsea system, “meeting the technical, time and safety requirements, Petrobras recently noted.
Petrobras currently has about 6,400 km of umbilicals installed in its offshore projects in the country. The Umbilical Supply Plan, which will also describe the main characteristics of the product to be used in its projects, should be launched shortly, since it was expected soon after the announcement of the Business Plan 2018-2022, which occurred on December 21.
The market already expects smaller volumes of lines hired per project in the province. The traditional “frame agreements, which reached 300 km of lines, are unlikely to be accepted again by Petrobras.
In the case of Libra, whose pilot (Mero field) is scheduled to start operation in 2021, it is believed that the demand for umbilicals is on the order of 50 km-60 km per field.
The configuration chosen at the beginning by the consortium operated by Petrobras, with 40% in partnership with Shell (20%), Total (20%), CNPC (10%) and CNOOC (10%), umbilicals to an underwater distribution unit (SDU), from where the cables will go to each of the wells – in the case of Mero will be 17 connected to the FPSO recently contracted with Modec.
In its earlier projects, Petrobras typically connected umbilicals directly (tie-ins) from the platform to the wells. The option, on the one hand, reduced the exposure to the risk, since, in case of failure in the lines connected to the SDU, the entire field production could be compromised. On the other hand, such a configuration demanded a higher umbilical mileage.
Contracts
In addition to Libra and Sepia tenders, the market awaits the launch of the bid process for the Berbigão field, also located in the Santos pre-salt cluster, and whose first oil is scheduled for this year.
Throughout 2017, Petrobras signed umbilical contracts with the three manufacturers installed in the country for pre-salt projects. Oceaneering and MfX respectively took lots 1 and 2 of Atapu/Búzios, with about 70 km of lines each. Headquartered in Bahia, MfX was the umbilicals supplier of Petrobras’ only two offshore production systems to start operations in 2017: the P-66, in the Lula Sul field, and the FPSO Pioneiro de Libra, which is conducting the Long-Duration Tests (LDTs) in the area. Prysmian has signed contracts to deliver approximately 100 km of umbilicals to Lula Extremo Sul and approximately 30 km to Búzios 4.
Peregrino
Owner of an umbilical plant in Vila Velha (ES), Prysmian is well positioned to fight for the umbilical contract of the second phase of development of the Peregrino field, operated by Statoil, in the Campos Basin. That is because it was the supplier of the lines used by the Norwegian oil company in the first phase of the venture, after winning a bid in 2007.
The technology used in Peregrino is power cables, a specialty of Prysmian, which also has a strong presence in the electric power sector. Its competitors in Brazil basically work with the hydraulic umbilicals generally used by Petrobras.

Source Brazil Energia Magazine

News

Over $54bn will be spent on Brazil’s upstream capex to 2020

12/01/2018

GlobalData expects that an average capex of $18.2bn per year will be spent...

Total Launches Large-Scale Development of the Giant Libra Field

04/01/2018

Total announces that it has taken the investment decision for the first...

Petrobras To Pay $2.95B To Settle US Class Action Over Corruption

04/01/2018

NEW YORK, Jan 3 (Reuters) - Brazil s state-controlled oil company,...

Manufacturers prepare to meet new Petrobras requirements in future pre-salt projects

04/01/2018

By Roberto Francellino Last updated Jan 3, 2018 Share As in other...

Total launches large-scale development of giant Libra field

20/12/2017

PARIS -- Total announces that it has taken the investment decision for the...