Brazil's Petrobras, Partners Sign $3.5 Billion Oil Platform Deal
November 11, 2010
SAO PAULO -(Dow Jones)- Brazilian state-controlled oil company Petrobras (PBR, PETR4.BR), and three minority partners in offshore oil development projects, on Thursday announced a $3.5 billion deal with Brazilian engineering company Engevix to build eight production vessels.
Engevix Engenharia SA will build eight floating production, storage and offloading vessels at a site in the southern Brazilian state of Rio Grande do Sul. They will be used in development of huge offshore reserves known as the pre-salt region.
Petrobras will use the eight vessels in conjunction with three minority partners in the offshore fields known as BM-S-11 and BM-S-9. The minority partners are BG Group PLC (BRGYY, BG.LN), Galp Energia SGPS SA (GALP.LB) and Repsol YPF SA (REP, REP.MC).
In a statement, Petrobras said, "The vessels will be standardized. This will permit faster construction, economies of scale and reductions in cost."
Each vessel will be able to produce up to 150,000 barrels per day of crude oil. The vessels will be delivered to Petrobras and its partners between 2013 and 2015. About 70% of materials and components for the vessels will be supplied by Brazilian companies, according to Petrobras.
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