There’s no doubt that Brazil’s plastics market continues to grow — but market veterans say there’s work to be done before pouring a good, strong caipirinha to celebrate.
“There’s no problem with finding growth,” plastics executive Jose Ricardo Roriz said at Brasilplast 2011, held 9-13 May in São Paulo. “That’s expected to continue during the next year. The problem is competitiveness, because our cost to produce is high.”
Moving forward, an abundance of small companies will be a key issue for the Brazilian industry to face. “We have close to 12,000 processors, but 90% of them have less than 100 employees,” Roriz added. “We haven’t seen consolidation yet, and a lot of these companies need to improve their overall business.”
Roriz has a valuable vantage point as president of both Abiplast — Brazil’s main plastics trade association — and Vitopel, which ranks as one of Brazil’s largest makers of biaxially oriented PP film, with annual sales of more than $400m (€272.9m). Vitopel is based in Argentina, but operates two of its three film plants in Brazil.
Roriz’s expectation of future growth was evident by the crowds at Brasilplast, which drew roughly 65,000 attendees and more than 1,300 exhibitors. At the event, Abiplast provided updated statistics that showed the number of processors operating in Brazil shot up almost 30% in the 2005-09 period and now totals almost 11,500.
Brazilian plastics processors rang up sales of $18bn (€12.3bn) in 2010, but the market still had a $1.5bn (€1bn) trade deficit in finished plastic products. The number of employees working for Brazilian plastics processors also rocketed up almost 40% during 2005-09 and now is near 350,000.
This trend is in line with recent Brazilian economic growth that’s averaged 5-6% in recent years and is expected to clock in at 4.5% in 2011. Brazil — the world’s fifth-largest country with more than 190 million residents —– now boasts a gross domestic product of $2.1 trillion (€1.4 trillion). That number accounts for almost half of the GDP of the entire Latin American region, well ahead of Mexico at 25%.
The plastics growth trend has been boosted by growth in Brazil’s middle class, which totaled 102 million in 2010 — more than 60% larger than that group was in 2005. This growing middle class is spending more on many plastic items, including durable goods. And there’s still room for growth, as Brazil’s per-capita consumption of polyethylene, polypropylene and PVC in 2008 was less than 51 pounds — far below the US average of 167 pounds and the European average of 150 pounds.
Brazil — and Latin America in general — also is benefiting from a solid political climate, according to Rina Quijada, owner of IntelliChem, a Houston-based consulting firm with a focus on Latin America. “Most of the region is politically stable, unlike in prior years,” she said.
Resin consumption
Growth also has led to greater resin consumption. Brazilian PE demand topped 5.5 billion pounds last year, with PP demand exceeding 3.3 billion pounds and polystyrene demand coming close to 900 million pounds. PE accounted for almost 40% of the nation’s overall resin demand, with PP having a 25% share, according to Abiplast. Brazil’s total resin consumption grew more than% in 2005-10, and consumption of PE alone is expected to average almost 7% growth between 2010 and 2015.
For plastic end markets in Brazil, food led the way in 2010 at almost 26%, with construction and non-food packaging each at just under 15%. Among processing methods, extrusion generated 57% of all processing activity, with injection molding a distant second at 19%.
Geographically, Brazilian plastics processing is heavily balanced toward the southeastern portion of the country, which includes São Paulo. Some 85% of Brazil’s processors are located there. The region also accounts for 80% of the country’s resin consumption, Abiplast said.
But the Brazilian plastics sector is not without its challenges. One market watcher estimated that as many as 5,000 of the nation’s plastics processing firms — more than 40% — don’t produce high-quality end products. But since the market is still growing so quickly, it’s hard to control the flood of companies entering the market. And meaningful consolidation appears to be several years away.
“There are some good processors [in Brazil], but there’s a lot of work to do,” said Otavio Carvalho, director of the Maxiquim consulting firm in Porto Alegre. “It would be easy to increase overall production by 10%. They don’t realize how productive they could be with new machinery or even with the machinery they already have.”
Roriz agreed that productivity is an issue facing the Brazilian market. “We’re trying to increase productivity to compete with imports,” he said. “We can’t afford to lose focus.”
High resin prices also are a challenge for Brazil’s plastic processors such as Winning Pack, a 14-employee blow moulder in São Paulo. Commercial director Marco Souza cited Braskem’s domination of Brazil’s PE and PP markets as a reason Brazil has prices that are higher than those of imported resin.
In Braskem’s defense, consultant Carvalho said that the firm was content to proceed with a strong competitor in Quattor Petroquimica, but Quattor’s financial problems led it to be acquired by São Paulo-based Braskem last year. Overall, Braskem’s actions with Quattor and in consolidating the Brazilian resin market seem to be working out so far, he added.
“What Braskem has done [with Quattor] had to happen for the good of the industry,” Carvalho said. “All of the companies that went into Braskem were small and non-integrated, so that was a problem. Now they’re going to have dedicated plants for each grade.”
Winning Pack makes a variety of bottles for the chemical, agricultural and food markets. Sousa added that finding financing for growth isn’t difficult in the current Brazilian market, thanks mainly to BNDES, the country’s national development bank.
Tax crackdown
One factor that may increase Brazil’s rate of processor consolidation, according to Carvalho, is a crackdown on taxes which may cause numerous processors to lose their “informal” status. Currently, “informals” pay only 40-50% of taxes paid by fully recognized companies. Tighter enforcement is in the works, which could have a big impact, Carvalho said.
“More enforcement will take companies out as they’re required to pay taxes,” he explained. “They won’t be able to afford everything.”
2011-06-29
Brazil adds to gas reserves with new onshore find
RIO DE JANEIRO, June 28 (UPI) -- Brazil seems poised to add significant new quantities of natural gas to its expanding reserves of crude oil and gas on land and at great depths of its Atlantic Ocean coast and seabed.
News of the latest discovery of natural gas coincided with industry reports the government of President Dilma Rousseff would likely call an auction later this year to draw new investment into new exploration projects in the Sergipe Basin in the northeast of the country.
The International Energy Agency last month declared natural gas the leading fuel of the future and predicted the global natural gas industry could be entering a "golden age" if all conditions for its responsible exploitation were met by the operators.
Brazil has been on a winning streak, with oil and gas discovered up to 200 miles offshore, and the bonanza has transformed the country's development planning and also led to increased military spending to protect the newly found wealth.
Spanish oil and gas group Repsol YPF, meanwhile, said its Brazilian joint venture with China's Sinopec Group had also made a new discovery of good quality oil in ultra-deep waters off the Brazilian coast.
Repsol said in a statement the Gavea exploration well could be the most significant find made in the pre-salt area of the Campos Basin, already famous for large finds.
It said the consortium is analyzing the results of the well.
The state-controlled oil company Petrobras said its experts found the natural gas deposits in an onshore field close to an area where exploration licenses are due for auction later this year.
Officials said up to 174 exploration blocks could be put to auction. It was not immediately clear if the new gas discovery would influence Brazil's decision on the makeup and scale of the planned auctions.
Petrobras also did not say when it would declare the gas find commercially feasible.
The discovery at the Ilha Pequena block in the Sergipe Basin adds to a growing inventory of hydrocarbon finds at a time when Brazil says it wants to concentrate more on renewable energy.
Some of its renewable energy plans, however, have met with opposition from environmentalists. Brazil's plans for the giant Belo Monte Amazon dam complex met with international disapproval because of fears it would devastate ecology of a vast pristine region. The government says it needs the hydroelectric project to meet growing energy demands.
Brazil aims to more than double oil production by 2020 as offshore sub-salt oil wells begin coming on stream. It also has plans to expand its infrastructure for development of gas reserves.
News of the latest discovery of natural gas coincided with industry reports the government of President Dilma Rousseff would likely call an auction later this year to draw new investment into new exploration projects in the Sergipe Basin in the northeast of the country.
The International Energy Agency last month declared natural gas the leading fuel of the future and predicted the global natural gas industry could be entering a "golden age" if all conditions for its responsible exploitation were met by the operators.
Brazil has been on a winning streak, with oil and gas discovered up to 200 miles offshore, and the bonanza has transformed the country's development planning and also led to increased military spending to protect the newly found wealth.
Spanish oil and gas group Repsol YPF, meanwhile, said its Brazilian joint venture with China's Sinopec Group had also made a new discovery of good quality oil in ultra-deep waters off the Brazilian coast.
Repsol said in a statement the Gavea exploration well could be the most significant find made in the pre-salt area of the Campos Basin, already famous for large finds.
It said the consortium is analyzing the results of the well.
The state-controlled oil company Petrobras said its experts found the natural gas deposits in an onshore field close to an area where exploration licenses are due for auction later this year.
Officials said up to 174 exploration blocks could be put to auction. It was not immediately clear if the new gas discovery would influence Brazil's decision on the makeup and scale of the planned auctions.
Petrobras also did not say when it would declare the gas find commercially feasible.
The discovery at the Ilha Pequena block in the Sergipe Basin adds to a growing inventory of hydrocarbon finds at a time when Brazil says it wants to concentrate more on renewable energy.
Some of its renewable energy plans, however, have met with opposition from environmentalists. Brazil's plans for the giant Belo Monte Amazon dam complex met with international disapproval because of fears it would devastate ecology of a vast pristine region. The government says it needs the hydroelectric project to meet growing energy demands.
Brazil aims to more than double oil production by 2020 as offshore sub-salt oil wells begin coming on stream. It also has plans to expand its infrastructure for development of gas reserves.
Batista’s OSX Targets Petrobras Rig Orders After License Win
OSX Brasil SA (OSXB3), the oil services company controlled by Brazilian billionaire Eike Batista, is targeting billions of dollars in contracts from state-controlled Petroleo Brasileiro SA (PETR4) after winning a construction license.
The Rio de Janeiro-based company plans to submit bids to build some of the 21 rigs to be contracted this year by Sete Brasil, a joint venture between Petrobras and state-run pension funds, Chief Financial Officer Roberto Monteiro said yesterday in a telephone interview. OSX currently only has orders from OGX Petroleo & Gas Participacoes SA, also owned by Batista.
OSX received a license last week allowing it to build a shipyard in Rio de Janeiro state and will start clearing land in coming days, Monteiro said. Petrobras approved the construction of seven deep-water rigs in February for $4.64 billion, or $662 million each, as part of a program to add 28 rigs to its fleet.
“By getting the license now we are able to start construction in the next few days,” Monteiro said from Rio de Janeiro. “Now we are moving full steam ahead.”
OSX plans to finalize an $850 million project finance loan for its second offshore platform in one to two months, he said. OSX is seeking a better rate than the 4.25 percent over Libor that it paid for a similar 8 ½ year loan last year, he said.
Brazil’s oil and gas industry needs $400 billion in goods and services through 2020 for production and refining projects, according to the ONIP industry group.
$30 Billion
OSX expects to supply $30 billion worth of equipment to OGX, also based in Rio de Janeiro. OGX, which expects first production in October, plans 1.38 million barrels a day of output by 2019 and will receive its first platform from OGX in late August. OSX has about $4.8 billion in existing orders from OGX, Monteiro said.
OSX sees total demand for rigs and platforms in Brazil at about $200 billion over the next 15 years. Petrobras is doubling its deep-water fleet to tackle projects in the Atlantic Ocean, including the 6.5-billion-barrel Lula field, the largest discovery in the Americas in over three decades.
Brazilian laws require Petrobras, OGX and other oil companies to buy a majority of goods and services from Brazilian suppliers, benefitting local shipyards including OSX. Still, Brazil doesn’t have enough existing shipyards to supply equipment demand, according to Monteiro.
“It’s challenging to build a unit at international prices and meanwhile build a yard,” he said. “We have our own profitability standards that we would like to meet.”
The Rio de Janeiro-based company plans to submit bids to build some of the 21 rigs to be contracted this year by Sete Brasil, a joint venture between Petrobras and state-run pension funds, Chief Financial Officer Roberto Monteiro said yesterday in a telephone interview. OSX currently only has orders from OGX Petroleo & Gas Participacoes SA, also owned by Batista.
OSX received a license last week allowing it to build a shipyard in Rio de Janeiro state and will start clearing land in coming days, Monteiro said. Petrobras approved the construction of seven deep-water rigs in February for $4.64 billion, or $662 million each, as part of a program to add 28 rigs to its fleet.
“By getting the license now we are able to start construction in the next few days,” Monteiro said from Rio de Janeiro. “Now we are moving full steam ahead.”
OSX plans to finalize an $850 million project finance loan for its second offshore platform in one to two months, he said. OSX is seeking a better rate than the 4.25 percent over Libor that it paid for a similar 8 ½ year loan last year, he said.
Brazil’s oil and gas industry needs $400 billion in goods and services through 2020 for production and refining projects, according to the ONIP industry group.
$30 Billion
OSX expects to supply $30 billion worth of equipment to OGX, also based in Rio de Janeiro. OGX, which expects first production in October, plans 1.38 million barrels a day of output by 2019 and will receive its first platform from OGX in late August. OSX has about $4.8 billion in existing orders from OGX, Monteiro said.
OSX sees total demand for rigs and platforms in Brazil at about $200 billion over the next 15 years. Petrobras is doubling its deep-water fleet to tackle projects in the Atlantic Ocean, including the 6.5-billion-barrel Lula field, the largest discovery in the Americas in over three decades.
Brazilian laws require Petrobras, OGX and other oil companies to buy a majority of goods and services from Brazilian suppliers, benefitting local shipyards including OSX. Still, Brazil doesn’t have enough existing shipyards to supply equipment demand, according to Monteiro.
“It’s challenging to build a unit at international prices and meanwhile build a yard,” he said. “We have our own profitability standards that we would like to meet.”
Brazil takes on challenges of Pre-Salt
Pipelines International — June 2011
Brazil’s state-owned petroleum company Petrobras has awarded Saipem a contract to install two export pipelines in the country’s Pre-Salt region, located in the Atlantic Ocean.
Petrobras has awarded Saipem a contract for the installation of the Guara and Lula-Northeast gas export pipelines in the Santos Basin, approximately 260 km off the coasts of Rio de Janeiro and São Paulo, in water depths between 2,100 and 2,200 m.
The contract encompasses the transportation, installation and pre-commissioning of two export pipelines, as well as the engineering, procurement and construction of related subsea equipment.
The 54 km, 18 inch diameter first line will connect the Guara floating production storage and offloading (FPSO) vessel to a subsea gathering manifold in the Lula field. The FPSO is being constructed by Schahin/Modec consortium, will be able to produce 120,000 bbl/d of oil and 5 MMcm/d of gas, and is expected to go on-stream in late 2012.
The 22 km, 18 inch diameter second line will connect the Lula-Northeast FPSO to the same manifold in the Lula field.
The offshore activities for both the contracts will be performed mainly by the newly-built and highly specialised Saipem FDS 2 vessel, which will have the capacity to develop offshore fields by J-laying and lifting up to 1,000 t in dynamic position. Pipelaying on the project will be carried out in different periods between 2012 and 2013.
The Guara field is estimated to have between 1.1 and 2 Bbbl of recoverable oil.
The challenges of Pre-Salt petroleum production
The Pre-Salt region is located approximately 260 km off the coast of Brazil in the Atlantic Ocean. The region is named ‘Pre-Salt’ because the oil and gas resources are located in deep and ultra-deep waters, underneath an additional layer of salt that can be up to 2,000 m thick.
According to Petrobras, the biggest challenge in producing petroleum from these basins is the layer of salt, which, under high pressure and at high temperatures, behaves like a plastic, making it difficult to ensure the stability of the rock in the thick layer of salt.
Another challenge is transporting the oil and gas to shore once it has been produced.
Petrobras is investing in research for the development of pipeline infrastructure, which will enable more cost-effective production of Pre-Salt petroleum resources.
Petrobras has contracted a Japanese consortium to develop a flexible pipe design for offshore oil production in ultra-deep waters in the Pre-Salt cluster. The technical feasibility study is scheduled for completion in December 2014.
Brazil’s state-owned petroleum company Petrobras has awarded Saipem a contract to install two export pipelines in the country’s Pre-Salt region, located in the Atlantic Ocean.
Petrobras has awarded Saipem a contract for the installation of the Guara and Lula-Northeast gas export pipelines in the Santos Basin, approximately 260 km off the coasts of Rio de Janeiro and São Paulo, in water depths between 2,100 and 2,200 m.
The contract encompasses the transportation, installation and pre-commissioning of two export pipelines, as well as the engineering, procurement and construction of related subsea equipment.
The 54 km, 18 inch diameter first line will connect the Guara floating production storage and offloading (FPSO) vessel to a subsea gathering manifold in the Lula field. The FPSO is being constructed by Schahin/Modec consortium, will be able to produce 120,000 bbl/d of oil and 5 MMcm/d of gas, and is expected to go on-stream in late 2012.
The 22 km, 18 inch diameter second line will connect the Lula-Northeast FPSO to the same manifold in the Lula field.
The offshore activities for both the contracts will be performed mainly by the newly-built and highly specialised Saipem FDS 2 vessel, which will have the capacity to develop offshore fields by J-laying and lifting up to 1,000 t in dynamic position. Pipelaying on the project will be carried out in different periods between 2012 and 2013.
The Guara field is estimated to have between 1.1 and 2 Bbbl of recoverable oil.
The challenges of Pre-Salt petroleum production
The Pre-Salt region is located approximately 260 km off the coast of Brazil in the Atlantic Ocean. The region is named ‘Pre-Salt’ because the oil and gas resources are located in deep and ultra-deep waters, underneath an additional layer of salt that can be up to 2,000 m thick.
According to Petrobras, the biggest challenge in producing petroleum from these basins is the layer of salt, which, under high pressure and at high temperatures, behaves like a plastic, making it difficult to ensure the stability of the rock in the thick layer of salt.
Another challenge is transporting the oil and gas to shore once it has been produced.
Petrobras is investing in research for the development of pipeline infrastructure, which will enable more cost-effective production of Pre-Salt petroleum resources.
Petrobras has contracted a Japanese consortium to develop a flexible pipe design for offshore oil production in ultra-deep waters in the Pre-Salt cluster. The technical feasibility study is scheduled for completion in December 2014.
Aker & Other Projects In Brazil
Aker has won two contracts, together worth £13m, from CQG Oil and Gas Contractors and CCI Oil and Gas Contractors, for the supply of Pusnes offloading systems to two FPSOs in Brazil.The offloading systems will be installed on the two FPSOs P-58 and P-62, which are being converted and built for Petrobras
Oxford Catalysts Group’s microchannel reactor technology is now set to be deployed in a 50 barrels/day BTL plant planned for Brazil. The plant, a JV between Portuguese company SGC Energia and an un-named partner. is expected to begin operating early in 2012. (
Metso is to supply all main technology for the 1,500ktpa greenfield pulp mill of Suzano Papel e Celulose SA, to be built in the state of Maranhão, Brazil. Start-up is due H1/13. Metso said a typical value of an order of this size and scope is Euro800-900m, covering all suppliers. Metso’s scope of supply covers wood handling, cooking plant and fibreline, pulp drying and baling, evaporation, power boiler, recovery boiler, causticizing and lime kiln, including an integrated automation system for all process areas.
Metso and Petrobras have signed a contract for the supply of spare parts and maintenance services for Metso’s valves, actuators and positioners for 11 refineries in Brazil. The contract, which includes intelligent tools for preventive and predictive maintenance planning, follows a two-year Metso pilot at a Petrobras refinery in São Paulo.
Oxford Catalysts Group’s microchannel reactor technology is now set to be deployed in a 50 barrels/day BTL plant planned for Brazil. The plant, a JV between Portuguese company SGC Energia and an un-named partner. is expected to begin operating early in 2012. (
Metso is to supply all main technology for the 1,500ktpa greenfield pulp mill of Suzano Papel e Celulose SA, to be built in the state of Maranhão, Brazil. Start-up is due H1/13. Metso said a typical value of an order of this size and scope is Euro800-900m, covering all suppliers. Metso’s scope of supply covers wood handling, cooking plant and fibreline, pulp drying and baling, evaporation, power boiler, recovery boiler, causticizing and lime kiln, including an integrated automation system for all process areas.
Metso and Petrobras have signed a contract for the supply of spare parts and maintenance services for Metso’s valves, actuators and positioners for 11 refineries in Brazil. The contract, which includes intelligent tools for preventive and predictive maintenance planning, follows a two-year Metso pilot at a Petrobras refinery in São Paulo.
Keppel Secures Shipbuilding Contracts from Brazilian Operators
Keppel Singmarine Brasil (KSM Brasil), Keppel Offshore & Marine Ltd (Keppel O&M)'s new 7.6-ha shipbuilding facility in the state of Santa Catarina, has secured two newbuild contracts worth about S$140 million from fleet operators in Brazil.
The first contract entails building a series of six 45-tonne bollard pull twin-screw Azimuth Stern Drive (ASD) harbour tugboats, for REBRAS - Rebocadores do Brasil S.A. (SMIT Rebras).
In the second contract, the yard will construct a large-sized 4500dwt Platform Supply Vessel (PSV) based on its proprietary MTD 9045P-DE design for Keppel O&M's Brazilian ship-owning arm, Guanabara Navegacao.This is the first vessel constructed under the business model to build Offshore Support Vessels in anticipation of demand in Brazil, and such vessels will be offered for bare-boat charter or sale upon completion.
KSM Brasil specialises in constructing Offshore Support Vessels such as Anchor Handling Tug Supply (AHTS) vessels, PSVs, Oil Recovery Support Vessels and harbour/terminal tugboats.
The new facility in Brazil is also able to fabricate offshore steel structures and support major projects undertaken by Keppel's BrasFELS yard in Angra dos Reis.
Mr. Hoe Eng Hock, Executive Director of KSM Brasil shared, "Petrobras will need over 100 Brazilian-built offshore support vessels by 2020, to facilitate the exploration and development of the Santos Basin's deep water pre-salt fields. We see a growing market for purpose-built support vessels that can operate safely and efficiently offshore Brazil.
"Keppel Singmarine has been building harbour tugs for the global fleet of Smit in Singapore and China Nantong for the past 20 years. With the award of six harbour tugs contract, the relationship and partnership between Smit and Keppel has deepened and expanded to the new frontier in Brazil."
KSM Brasil's scope for the six tugboats includes detailed design and engineering work and the purchase of all equipment. The first tugboat will be delivered in 4Q2012, followed by the remaining five at three-month intervals. These Robert Allan-designed tugboats will be deployed by SMIT Rebras to work at key ports across Brazil.
Meanwhile, GNL's 4500 dwt PSV is slated for completion in 2013. The PSV is custom-designed by Keppel's Marine Technology Development unit to meet the stringent requirements of Petrobras. The unique arrangement of the PSV's internal tanks and systems enable it to transport a wide combination of oil-based and water-based bulk cargoes for offshore exploration and production.
This ABS Classed PSV spans 94.2m long and 19.8m wide. It features a large deadweight capacity in excess of 4,500 tonne and a deck space of 1000sqm which can accommodate 26 crew members. Equipped with a diesel-electric propulsion system and dynamic positioning (DP) 2 capability, this PSV is well suited to operate in different offshore conditions.
The above contracts are not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.
The first contract entails building a series of six 45-tonne bollard pull twin-screw Azimuth Stern Drive (ASD) harbour tugboats, for REBRAS - Rebocadores do Brasil S.A. (SMIT Rebras).
In the second contract, the yard will construct a large-sized 4500dwt Platform Supply Vessel (PSV) based on its proprietary MTD 9045P-DE design for Keppel O&M's Brazilian ship-owning arm, Guanabara Navegacao.This is the first vessel constructed under the business model to build Offshore Support Vessels in anticipation of demand in Brazil, and such vessels will be offered for bare-boat charter or sale upon completion.
KSM Brasil specialises in constructing Offshore Support Vessels such as Anchor Handling Tug Supply (AHTS) vessels, PSVs, Oil Recovery Support Vessels and harbour/terminal tugboats.
The new facility in Brazil is also able to fabricate offshore steel structures and support major projects undertaken by Keppel's BrasFELS yard in Angra dos Reis.
Mr. Hoe Eng Hock, Executive Director of KSM Brasil shared, "Petrobras will need over 100 Brazilian-built offshore support vessels by 2020, to facilitate the exploration and development of the Santos Basin's deep water pre-salt fields. We see a growing market for purpose-built support vessels that can operate safely and efficiently offshore Brazil.
"Keppel Singmarine has been building harbour tugs for the global fleet of Smit in Singapore and China Nantong for the past 20 years. With the award of six harbour tugs contract, the relationship and partnership between Smit and Keppel has deepened and expanded to the new frontier in Brazil."
KSM Brasil's scope for the six tugboats includes detailed design and engineering work and the purchase of all equipment. The first tugboat will be delivered in 4Q2012, followed by the remaining five at three-month intervals. These Robert Allan-designed tugboats will be deployed by SMIT Rebras to work at key ports across Brazil.
Meanwhile, GNL's 4500 dwt PSV is slated for completion in 2013. The PSV is custom-designed by Keppel's Marine Technology Development unit to meet the stringent requirements of Petrobras. The unique arrangement of the PSV's internal tanks and systems enable it to transport a wide combination of oil-based and water-based bulk cargoes for offshore exploration and production.
This ABS Classed PSV spans 94.2m long and 19.8m wide. It features a large deadweight capacity in excess of 4,500 tonne and a deck space of 1000sqm which can accommodate 26 crew members. Equipped with a diesel-electric propulsion system and dynamic positioning (DP) 2 capability, this PSV is well suited to operate in different offshore conditions.
The above contracts are not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.
2011-06-14
Brazil’s economic ties with Africa continue to flourish
Former President Lula da Silva is often attributed with developing the increased economic relationship between Brazil and Africa – forming what is now known as the ‘south-south’ cooperation after visiting 27 of the 53 countries in 2003. It was this extensive trip that initiated the creation and expansion of a number of Brazilian consulates as well as other ties that were viewed as important.
According to the Financial Times, Brazilian commerce levels have reached US$25 billion in 2010 and there are now 500 Brazilian companies in operation in the continent (compared to 13 in 1995), many of whom see the region as not only an important export/investment destination but also as ways to use knowledge and expertise in fields such as hydro electricity, energy production and construction.
From a commercial perspective, the country is finding itself in increased competition with other nations with a strong desire to invest and boost trade links – particularly from China (that has double the level of commerce across the continent compared to Brazil); India; North America and Europe (although the latter two have slowed down their pace as a result of the global economic crisis).
Brazil’s leaders have been keen to gear up their activity to not fall behind with support of the government such as the BNDES $1.75 billion credit line for infrastructural construction firms (used by both Odebrecht and Camargo Corrêa).
The Bank of Brazil, Bradesco and the Espírito Santo bank have also stated their cooperative intention to actively search for opportunities, particularly in Mozambique, Angola and Cape Verde.
In February 2011, Lula revisited the continent to attend the World Social Forum in Senegal – largely in his post-presidency role to boost diplomatic relations –and heavily criticised the current model of international finance management, stating: “We must change the pages of the models from the outside”.
He said: “Brazil has no intention of dictating practices to anyone and always wants to learn with dignity from the wisdom of our brother countries.” Indeed, the Brazilian government has been commended on the co-development of programmes tied to the ministry of Social Development such as the auxiliary initiatives to the Bolsa Família (Family Grant) and the Zero Fome (Zero Hunger).
Such projects serve to resolve some of the core issues facing the African continent including food supply, HIV cure / prevention and other social / environmental issues.
A significant proportion of such investment has been witnessed in Portuguese speaking nations: Guinea Bissau, Mozambique and Angola.
But according to the United Nations, there are 300 Brazilian initiatives spread across 37 African nations (in 2002 there were 21 projects in 7 countries). One notable example is a project driven by the Oswaldo Cruz Foundation (Fiocruz) for the production of HIV treatment in Mozambique.
Embrapa organization is involved in the development of core infrastructural endeavours focused on improving capacitation, technical skills and agricultural security in Mali, Benin, Chad and Burkina Faso.
According José Geraldo Di Stefano, an engineer from the organization, “with a strong Africa, Brazil also stays strong because we can fight against the World Trade Organisation with regards to the subsidies being given to rich countries for the production of cotton.”
Di Stefano further states that the programme’s complementary intention is to develop the provision of food production essentially in rural areas where crop supplies are low.
Embrapa is also bringing its wide knowledge of rice production to Senegal which is expected to be used as a model throughout the continent as well as a partnership with the Japanese government entitled ProSavana that will work on developing the vast grasslands in Mozambique.
Brazil’s Senai organisation has also become increasingly involved throughout the continent – including a $20 million employment training programme, a police training school and educational establishments in Guinea Bissau which will be used as models in other African countries.
For the future, the Dilma Rousseff government looks firmly set to continue the momentum created in recent years.
Brazil’s ministry of External Relations has also created a programme which gives the Brazilian Cooperation Agency more autonomy whilst removing some of the former restrictions on its effective functionality.
In April 2011, the four BRICs (Brazil, Russia, India and China) in addition to South Africa announced the creation of a working group that will ease trade relations and create a cross lending system for mutual investment agreements to be made in local currencies.
However, amongst all the excitement, many questions remain with regards to the practically of expansion.
If Brazil chooses to focus on profitability – there is a risk that it will be viewed as egotistical.
If cooperation is the route to be taken, Brazil has to make an assessment whether its development interests will be fulfilled. It is difficult to say what will happen but it is certain that these decisions will have to be made.
Issues have also arisen with regards to transparency of funds being transferred between countries with the recent investigation being initiated into the disappearance of $300,000 which was passed through the Brazilian embassy in Harare, Zimbabwe.
According to the Financial Times, Brazilian commerce levels have reached US$25 billion in 2010 and there are now 500 Brazilian companies in operation in the continent (compared to 13 in 1995), many of whom see the region as not only an important export/investment destination but also as ways to use knowledge and expertise in fields such as hydro electricity, energy production and construction.
From a commercial perspective, the country is finding itself in increased competition with other nations with a strong desire to invest and boost trade links – particularly from China (that has double the level of commerce across the continent compared to Brazil); India; North America and Europe (although the latter two have slowed down their pace as a result of the global economic crisis).
Brazil’s leaders have been keen to gear up their activity to not fall behind with support of the government such as the BNDES $1.75 billion credit line for infrastructural construction firms (used by both Odebrecht and Camargo Corrêa).
The Bank of Brazil, Bradesco and the Espírito Santo bank have also stated their cooperative intention to actively search for opportunities, particularly in Mozambique, Angola and Cape Verde.
In February 2011, Lula revisited the continent to attend the World Social Forum in Senegal – largely in his post-presidency role to boost diplomatic relations –and heavily criticised the current model of international finance management, stating: “We must change the pages of the models from the outside”.
He said: “Brazil has no intention of dictating practices to anyone and always wants to learn with dignity from the wisdom of our brother countries.” Indeed, the Brazilian government has been commended on the co-development of programmes tied to the ministry of Social Development such as the auxiliary initiatives to the Bolsa Família (Family Grant) and the Zero Fome (Zero Hunger).
Such projects serve to resolve some of the core issues facing the African continent including food supply, HIV cure / prevention and other social / environmental issues.
A significant proportion of such investment has been witnessed in Portuguese speaking nations: Guinea Bissau, Mozambique and Angola.
But according to the United Nations, there are 300 Brazilian initiatives spread across 37 African nations (in 2002 there were 21 projects in 7 countries). One notable example is a project driven by the Oswaldo Cruz Foundation (Fiocruz) for the production of HIV treatment in Mozambique.
Embrapa organization is involved in the development of core infrastructural endeavours focused on improving capacitation, technical skills and agricultural security in Mali, Benin, Chad and Burkina Faso.
According José Geraldo Di Stefano, an engineer from the organization, “with a strong Africa, Brazil also stays strong because we can fight against the World Trade Organisation with regards to the subsidies being given to rich countries for the production of cotton.”
Di Stefano further states that the programme’s complementary intention is to develop the provision of food production essentially in rural areas where crop supplies are low.
Embrapa is also bringing its wide knowledge of rice production to Senegal which is expected to be used as a model throughout the continent as well as a partnership with the Japanese government entitled ProSavana that will work on developing the vast grasslands in Mozambique.
Brazil’s Senai organisation has also become increasingly involved throughout the continent – including a $20 million employment training programme, a police training school and educational establishments in Guinea Bissau which will be used as models in other African countries.
For the future, the Dilma Rousseff government looks firmly set to continue the momentum created in recent years.
Brazil’s ministry of External Relations has also created a programme which gives the Brazilian Cooperation Agency more autonomy whilst removing some of the former restrictions on its effective functionality.
In April 2011, the four BRICs (Brazil, Russia, India and China) in addition to South Africa announced the creation of a working group that will ease trade relations and create a cross lending system for mutual investment agreements to be made in local currencies.
However, amongst all the excitement, many questions remain with regards to the practically of expansion.
If Brazil chooses to focus on profitability – there is a risk that it will be viewed as egotistical.
If cooperation is the route to be taken, Brazil has to make an assessment whether its development interests will be fulfilled. It is difficult to say what will happen but it is certain that these decisions will have to be made.
Issues have also arisen with regards to transparency of funds being transferred between countries with the recent investigation being initiated into the disappearance of $300,000 which was passed through the Brazilian embassy in Harare, Zimbabwe.
Brasil Offshore 2011 starts tomorrow
It starts tomorrow (14) in Macaé, Brazil Offshore, the third largest world fair of the offshore industry. The event will run until Friday (17), which are expected to more than 50,000 visitors to the fair, which attracts 670 exhibitors.
The event is organized and promoted by Reed Exhibitions Alcantara Machado, by the city of Macae, the Brazilian Institute of Oil, Gas and Biofuels (IBP) and the Society of Petroleum Engineers (SPE).
Besides the booths, also happens to Business Roundtable, organized by and for ONIP SEBRAE, and sponsored by the Caixa Economica Federal (CEF), which will provide its products and services for the event and will feature the participation of 19 anchor companies - large companies Brazilian oil sector, which will participate in approximately 390 meetings with 78 vendors.
They are: Aker Solutions, Chevron, El Paso, Global Iesa Oil and Gas, Petrobras - Campos Basin, Q & B Petroleum, Repsol, Saipem, SBM Offshore, Shell, OGS - Oil & Gas, Superpesa Technip. Transocean, Usiminas, UTC, V & M and Wellstream. Besides them, Petrobras and Petronect offer the possibility to register on their registration.
According to the superintendent of ONIP, Bruno Musso, "the round is a great opportunity for small and medium-size and focus is precisely this interaction with the small and medium enterprises, whose products are not directly demanded by large enterprises, but integrating the supply chain industry. "
More information and complete program: www.brasiloffshore.com
The event is organized and promoted by Reed Exhibitions Alcantara Machado, by the city of Macae, the Brazilian Institute of Oil, Gas and Biofuels (IBP) and the Society of Petroleum Engineers (SPE).
Besides the booths, also happens to Business Roundtable, organized by and for ONIP SEBRAE, and sponsored by the Caixa Economica Federal (CEF), which will provide its products and services for the event and will feature the participation of 19 anchor companies - large companies Brazilian oil sector, which will participate in approximately 390 meetings with 78 vendors.
They are: Aker Solutions, Chevron, El Paso, Global Iesa Oil and Gas, Petrobras - Campos Basin, Q & B Petroleum, Repsol, Saipem, SBM Offshore, Shell, OGS - Oil & Gas, Superpesa Technip. Transocean, Usiminas, UTC, V & M and Wellstream. Besides them, Petrobras and Petronect offer the possibility to register on their registration.
According to the superintendent of ONIP, Bruno Musso, "the round is a great opportunity for small and medium-size and focus is precisely this interaction with the small and medium enterprises, whose products are not directly demanded by large enterprises, but integrating the supply chain industry. "
More information and complete program: www.brasiloffshore.com
2011-06-04
Latin America: The Quest for Talent
PROMOTING TALENT Brazilian mining giant Vale do Rio Doce has increasingly promoted people in their mid-30s to direct large projects. (Photo: Vale)
BETTER FUTURE Countries like Brazil, represented by this group of young people from Porto Alegre, are seeing a reverse brain drain. (Photo: EugenioHansen/OFS)
In an increasingly competitive global environment, major firms know that talent recruitment and cultivation is an urgent challenge. Latin America is no exception. For example, Brazilian multinational firm Vale do Rio Doce has increasingly promoted people in their mid-30s to direct large projects, and it is ramping up its in-house training so those employees can qualify for the higher positions sooner. Thus, it is spending around $100 million with its global training programs in 2011, around 30 percent to 50 percent more than last year.
Recognizably, talent recruitment is necessary for all large firms, but for multilatinas it is indispensable, since they are competing not just in their home markets, where they may still benefit from tariff and non-tariff barriers and a host of incentives reserved for local firms, including concessional financing, but in the global marketplace. The maturation of Latin American firms, whether focused largely on internal markets, foreign markets, or both, has been significant. These firms’ abilities to secure financing and access state-of-the-art technology and supply chain management systems have increased significantly. It is the “people” factor that remains the most challenging. Just look at mergers and acquisitions (M&A), nearly $190 billion in Latin America in 2010, more than double the amount of the previous year. Over 70 percent of M&As fail to meet their objectives, or fail outright. The exclusion of HR from the process right from the beginning is a principal cause of failure. However, as noted by Daniel Nadborny, head of Mercer’s M&A practice for Latin America, significant efforts are being made to change this. His colleague Paule Desaulniers, senior partner in their Mexico office, emphasizes that share values invariably decline when the acquirer purchases a company; therefore, human resources—talent—are critically important to removing uncertainty, boosting productivity and increasing overall performance to recuperate stock value.
The good news is that, companies are finally recognizing the importance that their HR departments can play in talent selection and recruitment and engaging senior HR managers more closely with line managers in the process—all linked to the firm’s strategies and directions. Consequently, the prime challenges for HR managers are to attract talent by making compelling promises centered on the company’s brand, opportunity, and purpose, and to retain talent by keeping promises, ensuring a merit-centered reward system, and accelerating professional development.
This difficult task of recruiting talented individuals in Latin America has been exacerbated by a massive brain-drain in some Latin American countries. When it comes to brain-drain, Venezuela is the champion. According to a recent study by the Latin American Economic System, Venezuela’s outflow of highly skilled workers over 25 years of age rose 216 percent from 1990 to 2007. As a result, it is estimated that 9,000 Venezuelan scientists now live in the US, while only 6,000 live in Venezuela. Venezuela, however, is not alone in this exodus of talent, other Bolivarian countries such as Bolivia and Ecuador are following the same footsteps. For example, one in three Bolivians under 30 have plans to emigrate.
Fortunately, not all is doom and gloom in Latin America and some Latin American countries are experiencing “reverse” brain-drain. Countries such as Chile, Brazil, and Peru are implementing policies to entice talented and skilled individuals to come back to work in their home country. For example, Start-Up Chile is working closely with the government to reverse brain-drain by continuing to develop a globally-recognized technology center and by planning to create over 800,000 technology jobs by 2014. Consequently, Chile has seen an increased presence of both technology start-ups and active multinationals such as GE, Oracle, and Yahoo, which are recruiting and building the job market. Similarly, Brazil’s job market is booming as a result of a thriving economy and an appreciation of its local currency, which makes compensation much more attractive when converted to dollars or Euros. Thus, although companies operating in Brazil may have to pay more to recruit and hire new talent, the available pool of talented individuals willing to relocate to Brazil has increased greatly. Companies such as Vale do Rio Doce and Citigroup have stepped-up their recruiting process by recruiting from top MBA and other university programs in the US and around the world.
The quest for talent—its identification, attraction, recruitment, retention and promotion--is one of the most daunting challenges of our time. How firms manage the process will surely impact their bottom line—both now and in the future.
BETTER FUTURE Countries like Brazil, represented by this group of young people from Porto Alegre, are seeing a reverse brain drain. (Photo: EugenioHansen/OFS)
In an increasingly competitive global environment, major firms know that talent recruitment and cultivation is an urgent challenge. Latin America is no exception. For example, Brazilian multinational firm Vale do Rio Doce has increasingly promoted people in their mid-30s to direct large projects, and it is ramping up its in-house training so those employees can qualify for the higher positions sooner. Thus, it is spending around $100 million with its global training programs in 2011, around 30 percent to 50 percent more than last year.
Recognizably, talent recruitment is necessary for all large firms, but for multilatinas it is indispensable, since they are competing not just in their home markets, where they may still benefit from tariff and non-tariff barriers and a host of incentives reserved for local firms, including concessional financing, but in the global marketplace. The maturation of Latin American firms, whether focused largely on internal markets, foreign markets, or both, has been significant. These firms’ abilities to secure financing and access state-of-the-art technology and supply chain management systems have increased significantly. It is the “people” factor that remains the most challenging. Just look at mergers and acquisitions (M&A), nearly $190 billion in Latin America in 2010, more than double the amount of the previous year. Over 70 percent of M&As fail to meet their objectives, or fail outright. The exclusion of HR from the process right from the beginning is a principal cause of failure. However, as noted by Daniel Nadborny, head of Mercer’s M&A practice for Latin America, significant efforts are being made to change this. His colleague Paule Desaulniers, senior partner in their Mexico office, emphasizes that share values invariably decline when the acquirer purchases a company; therefore, human resources—talent—are critically important to removing uncertainty, boosting productivity and increasing overall performance to recuperate stock value.
The good news is that, companies are finally recognizing the importance that their HR departments can play in talent selection and recruitment and engaging senior HR managers more closely with line managers in the process—all linked to the firm’s strategies and directions. Consequently, the prime challenges for HR managers are to attract talent by making compelling promises centered on the company’s brand, opportunity, and purpose, and to retain talent by keeping promises, ensuring a merit-centered reward system, and accelerating professional development.
This difficult task of recruiting talented individuals in Latin America has been exacerbated by a massive brain-drain in some Latin American countries. When it comes to brain-drain, Venezuela is the champion. According to a recent study by the Latin American Economic System, Venezuela’s outflow of highly skilled workers over 25 years of age rose 216 percent from 1990 to 2007. As a result, it is estimated that 9,000 Venezuelan scientists now live in the US, while only 6,000 live in Venezuela. Venezuela, however, is not alone in this exodus of talent, other Bolivarian countries such as Bolivia and Ecuador are following the same footsteps. For example, one in three Bolivians under 30 have plans to emigrate.
Fortunately, not all is doom and gloom in Latin America and some Latin American countries are experiencing “reverse” brain-drain. Countries such as Chile, Brazil, and Peru are implementing policies to entice talented and skilled individuals to come back to work in their home country. For example, Start-Up Chile is working closely with the government to reverse brain-drain by continuing to develop a globally-recognized technology center and by planning to create over 800,000 technology jobs by 2014. Consequently, Chile has seen an increased presence of both technology start-ups and active multinationals such as GE, Oracle, and Yahoo, which are recruiting and building the job market. Similarly, Brazil’s job market is booming as a result of a thriving economy and an appreciation of its local currency, which makes compensation much more attractive when converted to dollars or Euros. Thus, although companies operating in Brazil may have to pay more to recruit and hire new talent, the available pool of talented individuals willing to relocate to Brazil has increased greatly. Companies such as Vale do Rio Doce and Citigroup have stepped-up their recruiting process by recruiting from top MBA and other university programs in the US and around the world.
The quest for talent—its identification, attraction, recruitment, retention and promotion--is one of the most daunting challenges of our time. How firms manage the process will surely impact their bottom line—both now and in the future.
Petrobras, Ecopetrol Boost 2011 Peruvian Oil Exploration
Petroleo Brasileiro SA (PETR4) and Colombia’s Ecopetrol SA (ECOPETL) are among energy companies aiming to increase Peru investments by a combined 50 percent to $1.54 billion this year, said the president of the state oil contracting agency.
Brazil’s state-controlled oil company known as Petrobras, Ecopetrol, Argentina’s Pluspetrol SA and Calgary-based Gran Tierra Energy Inc. (GTE) will drill a dozen exploration wells in the Amazon jungle and off Peru’s coast this year, twice the average annual figure, Perupetro’s Daniel Saba said June 1 in an interview in Lima. Peru elects a new president in two days.
“With more companies entering Peru, more wells are being drilled,” said Saba, who awarded 14 exploration contracts in October. “Oil companies are in it for the long term and none of them have said they’re leaving.”
The Andean country’s stocks, bonds and currency slumped today on investor fears that former army renegade Ollanta Humala, who pledged to rewrite oil and mining contracts and halt gas exports if elected, may win the June 5 vote. Humala was statistically tied with Keiko Fujimori in the latest poll. Fujimori has promised to try to attract foreign investment.
Peru, which tripled natural gas output to a record 1.03 billion cubic feet a day in April from a year earlier, has lined up $10 billion in energy projects through 2016 in a bid to double crude output and gas reserves, according to the Energy Ministry. Companies including Canada’s Talisman Energy Inc. (TLM) and Spain’s Repsol YPF SA (REP), which have signed a record 86 contracts to date, invested $987 million last year.
Gas Investment
The outcome of the elections won’t slow a $2 billion expansion of the Camisea gas fields, said Daniel Guerra, spokesman of Buenos Aires-based operator Pluspetrol. Pluspetrol plans to quadruple gas shipments to petrochemical and power plant projects by the end of 2012.
“We believe we’ll be able to work with whoever is elected,” Guerra said in a May 18 interview during a visit to the fields. “It’s in the next government’s interest to bring in more investment in the gas industry.”
Transportadora de Gas del Peru, a seven-company group whose partners include Pluspetrol, is scheduled to finish an $850 million expansion of its gas conduit next year, he said.
Other energy investments in Peru include Perenco SA’s $2 billion oil and pipeline projects, CF Industries Holdings Inc. (CF)’s $2 billion petrochemicals complex and Petroperu’s $1.3 billion Talara refinery expansion.
Crude oil for July delivery fell 18 cents to settle at $100.22 a barrel on the New York Mercantile Exchange. Futures have doubled over the past two years.
Brazil’s state-controlled oil company known as Petrobras, Ecopetrol, Argentina’s Pluspetrol SA and Calgary-based Gran Tierra Energy Inc. (GTE) will drill a dozen exploration wells in the Amazon jungle and off Peru’s coast this year, twice the average annual figure, Perupetro’s Daniel Saba said June 1 in an interview in Lima. Peru elects a new president in two days.
“With more companies entering Peru, more wells are being drilled,” said Saba, who awarded 14 exploration contracts in October. “Oil companies are in it for the long term and none of them have said they’re leaving.”
The Andean country’s stocks, bonds and currency slumped today on investor fears that former army renegade Ollanta Humala, who pledged to rewrite oil and mining contracts and halt gas exports if elected, may win the June 5 vote. Humala was statistically tied with Keiko Fujimori in the latest poll. Fujimori has promised to try to attract foreign investment.
Peru, which tripled natural gas output to a record 1.03 billion cubic feet a day in April from a year earlier, has lined up $10 billion in energy projects through 2016 in a bid to double crude output and gas reserves, according to the Energy Ministry. Companies including Canada’s Talisman Energy Inc. (TLM) and Spain’s Repsol YPF SA (REP), which have signed a record 86 contracts to date, invested $987 million last year.
Gas Investment
The outcome of the elections won’t slow a $2 billion expansion of the Camisea gas fields, said Daniel Guerra, spokesman of Buenos Aires-based operator Pluspetrol. Pluspetrol plans to quadruple gas shipments to petrochemical and power plant projects by the end of 2012.
“We believe we’ll be able to work with whoever is elected,” Guerra said in a May 18 interview during a visit to the fields. “It’s in the next government’s interest to bring in more investment in the gas industry.”
Transportadora de Gas del Peru, a seven-company group whose partners include Pluspetrol, is scheduled to finish an $850 million expansion of its gas conduit next year, he said.
Other energy investments in Peru include Perenco SA’s $2 billion oil and pipeline projects, CF Industries Holdings Inc. (CF)’s $2 billion petrochemicals complex and Petroperu’s $1.3 billion Talara refinery expansion.
Crude oil for July delivery fell 18 cents to settle at $100.22 a barrel on the New York Mercantile Exchange. Futures have doubled over the past two years.
Petrobras christens Marlim Sul P-56 production unit
HOUSTON, June 3 -- Petroleo Brasileiro SA (Petrobras) christened on June 3 the P-56 semisubmersible production unit at the BrasFELS Shipyard, in Angra dos Reis in Brazil.
The $1.5 billion unit will produce oil and associated gas from Marlim Sul Module 3 in the Campos basin, about 120 km off Brazil. Petrobras expects production from the field to start in August after P-56 undergoes testing and final adjustments.
Petrobras signed the construction agreement for the unit with Keppel FELS and Technip in October 2007
P-56 will be anchored in 1,670 m of water and be connected to 10 producing and 11 injection wells. The unit can accommodate 70 risers. The designed production capacity of the unit is 100 million bo/d and 6 million cu m/day of gas.
The hull of P-56 was built entirely in Brazil and the topsides have a 72.9% Brazilian content. P-51, with an identical design to P-56, was the first unit built entirely in Brazil.
P-56 weighs a total 54,685 tons and is 125 m long, 110 m wide, and 137 m high. The unit will accommodate 200 people.
P-56 has a modular construction that includes the deck box and hull modules. Keppel FELS assembled the four process and utilities modules at the BrasFELS shipyard.
The process modules include:
• Two power generation modules (100 Mw) built by Rolls Royce in association with UTC Engenharia at UTC's site in Niteroi, Brazil.
• Two compression modules built by Nouvo Pignone (GE) at the Porto Novo Rio site in Rio de Janeiro.
The deck box was also built at BrasFELS, where the modules were integrated. Mating of the topsides and hull occurred in October 2010.
A pipeline will transport produced oil from P-56 about 20 km to the P-38 floating production, storage, and offloading vessel and another line will take the gas 15 km to the P-51 semisubmersible production unit.
The $1.5 billion unit will produce oil and associated gas from Marlim Sul Module 3 in the Campos basin, about 120 km off Brazil. Petrobras expects production from the field to start in August after P-56 undergoes testing and final adjustments.
Petrobras signed the construction agreement for the unit with Keppel FELS and Technip in October 2007
P-56 will be anchored in 1,670 m of water and be connected to 10 producing and 11 injection wells. The unit can accommodate 70 risers. The designed production capacity of the unit is 100 million bo/d and 6 million cu m/day of gas.
The hull of P-56 was built entirely in Brazil and the topsides have a 72.9% Brazilian content. P-51, with an identical design to P-56, was the first unit built entirely in Brazil.
P-56 weighs a total 54,685 tons and is 125 m long, 110 m wide, and 137 m high. The unit will accommodate 200 people.
P-56 has a modular construction that includes the deck box and hull modules. Keppel FELS assembled the four process and utilities modules at the BrasFELS shipyard.
The process modules include:
• Two power generation modules (100 Mw) built by Rolls Royce in association with UTC Engenharia at UTC's site in Niteroi, Brazil.
• Two compression modules built by Nouvo Pignone (GE) at the Porto Novo Rio site in Rio de Janeiro.
The deck box was also built at BrasFELS, where the modules were integrated. Mating of the topsides and hull occurred in October 2010.
A pipeline will transport produced oil from P-56 about 20 km to the P-38 floating production, storage, and offloading vessel and another line will take the gas 15 km to the P-51 semisubmersible production unit.
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