Brazil: Petrobras Inks Contract for VLCC Vessel Hull Conversion

Brazil - Petrobras Inks Contract for VLCC Vessel Hull Conversion

On May 7  Petrobras signed an agreement for the conversion of four VLCC (Very Large Crude Carrier) vessels into the hulls of the future P-74, P-75, P-76, and P-77 platforms that will operate in the Transfer of Rights Agreement areas, in the Santos Basin pre-salt.

The contract has a total value of US$1.7 billion and the works will be done at the Inhaúma Shipyard, in the state of Rio de Janeiro, which was leased by Petrobras and is being refurbished to meet the Company’s needs.

The agreement was signed with the consortium formed by the construction companies Norberto Odebrecht S/A, OAS Ltda and UTC Engenharia S/A. The works should meet a domestic content of 70%, creating approximately 4,000 direct jobs at the peak of the activities.

Conversion works are scheduled to start in June. The first unit in the series is platform P-74 and the vessel is already docked at the Port of Rio de Janeiro, with completion of the hull conversion expected for March 2014. Completion of the P-75 hull conversion is scheduled for October 2014, while completion for the P-76 and P-77 platforms are scheduled for 2015.

The most important conversion works are the structural reinforcements of the hulls; the enlargement, refurbishment and adaptation of the living quarters, which will have a capacity of 110 people; equipment and utility installation, and adaptations of the mooring system, among others. These works represent a milestone for the Brazilian naval industry: the last undertaking of this kind was the conversion of the P-48, in 2003.

After this conversion step is completed, each hull will be taken to another construction site, where installation of the production plant and the oil and gas processing modules will begin, along with the integration of the units (installation of the modules on the hulls). These agreements should be signed by April 2013.

Each platform will have the capacity of producing up to 150,000 barrels of oil and compressing 7 million cubic meters of gas per day. They are expected to operate at the Franco and Tupi Northeast prospects, both located in the Santos Basin pre-salt.

Source: Petrobras, May 11, 2012



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