Minimum local content for a fixed platform PRA-1

abarrelfullabarrelfull wrote on 04 Aug 2015 13:34

April 16, 2003

PETROLEO BRASILEIRO S.A – Petrobras, (BOVESPA: PETR3 / PETR4, NYSE: PBR / PBRA, LATIBEX: XPBR / XPBRA), Brazil’s largest oil and gas, petrochemicals and energy company, in a further demonstration of its commitment to national development through incentives for Brazilian industry, is adjusting its bidding procedures for the PRA-1 Autonomous Re-pumping Platform so as to include minimum local content requirements. PRA-1 will have the capacity to pump 815 thousand barrels/day and will be installed in the Campos basin as part of the Master Plan for Transport and Treatment of Oil, aimed at enabling the oil produced in the Marlim Sul, Marlim Leste and Roncador fields to be transported by pipeline.

PRA-1 will be put out to bid in four sections: one for fixed platform and piles; another for the pumping system; a third for the power generation module; and the last for the remaining modules, which include installation and hooking up at sea of all modules. Bids for fixed platform have already been put out and are reserved for companies that operate in Brazil. The other modules have not yet been put out to bid.

The intention of the adjustments approved by Petrobras’s Board is to include the requirement that construction of fixed platform and piles and the processing modules, utility services, accomodation and the installation of the generation module and possibly the installation of fixed platform and the piles, be carried out in Brazil. In addition, the detailed engineering of the power generation, processing, utility services and accomodation modules has to be carried out in Brazil.

As to the minimum local content, Petrobras has decided to require a minimum 75% of the contract value for the electricity generation module, excluding the turbines, and 60% for the construction and assembly of the modules, excluding the costs of installation and hook-up. This is expected to generate 2,500 direct jobs in Brazil.

The purpose of the Master Plan for Transport and Treatment of Oil in the Campos Basin is to use pipelines as an alternative to the shuttles, vessels that take the oil from the platforms to the shore. PRA-1 is expected to go into operation in the second half of 2005.

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