Petrobras tenders

Brazil’s state-owned Petroleo Brasileiro, or Petrobras, is expected to announce the result of tenders for the construction of two new oil drilling platforms by the end of next week, a company spokeswoman has said. After gasping in disbelief at the proposed prices for two new rigs, executives at Petrobras are again negotiating with companies bidding in a tender for the construction of rigs P-51 and P-52. Petrobras expected both projects to cost around USD 1 billion. But the lowest bid, made by a consortium composed of Fels Setal, a unit of Keppel Corp. of Singapore, and French engineering firm Technip-Coflexip , was still almost USD 500 million above Petrobras’s and market expectations: The Fels-Technip consortium submitted a bid of USD 701 million for P-51, and USSD 775 million for P-52. Even senior government officials were worried at the proposed prices, unveiled earlier this week. Three consortia made proposals to build and integrate the hull, processing plant, and utilities for the platforms. Petrobras is tendering for the platforms in three stages: the gas compression modules, generating units, and construction and integration. Samsung Corp. of South Korea proposed USD 1.021 billion and USD 1.042 billion for the two platforms, while a third consortium, composed of local construction group Odebrecht and Italian oil-services company Saipem SpA , proposed USD 1.022 billion and USD 1.052 billion, respectively.

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