Petrobras restarted tender for Libra Pilot FPSO

libra field fpsoBrazilian state-owned oil company Petrobras restarted the tender for the Libra Pilot floating production and storage offloading vessel in the Santos basin, following the cancelation of the previous bid process in August 2015 due to abnormally high price. The original bidding process included a requirement for local content commitment from the bidders, which condition will be dropped for the second bidding process. However, the production-sharing contract is expected to reduce the bidding prices, which will be executed in a competitive manner, ensuring that investments for development of the Libra area are complemented efficiently in relation to schedule, budget, quality and safety.

“The previous bid proposal resulted in a proposal with an abnormally high price compared to what could be expected in the international market, exceeding the expectations of Petrobras and its partners”, says the official statement of Petrobras. “This previous bid process required a local content commitment from the bidders in accordance with the production sharing contract (PSC)”, adds the company

The restart of the bidding process will be started after approval from the all shareholders in Libra field. Petrobras is the major stakeholder at the offshore field with 40% stake, while other members are Shell (20%), Total (20%), CNPC (10%) and CNOOC (10%). The start-up of the Libra Pilot project is anticipated in second half of 2020, but to meet this forecast the Libra consortium needs to hire the FPSO latest in first quarter of 2017.

Petrobras state-owned Brazilian corporation in the petroleum industry headquartered in Rio de Janeiro. The company is one of the largest oil corporations in the world, but during the last years suffers from serious financial problems due to falling oil prices and giant corruption scandal in Brazil.