Petrobras has initiated a tender for the decommissioning of two ageing FPSOs, the P-35 and P-37, located in the Marlim field within Brazil's Campos basin. This activity is part of a broader revitalization of operations in the region, which has already seen the deployment of three new FPSOs, and aligns with the company's plan to invest approximately $9.7 billion in decommissioning by 2030.

Tender Structure and Scope

The tender is split into two packages: Lot A for the P-35 and Lot B for the P-37. While one contractor can win both, the P-37 decommissioning is a firm commitment, whereas the P-35 is optional. The contract encompasses Engineering, Preparation, Removal, and Disposal (EPRD) activities, including the sale of topsides modules as scrap. A key feature of the workscope is the preservation and conditioning of the FPSO hulls and equipment for potential future reuse.

Retrofit Strategy for Asset Reuse

Petrobras is actively revisiting a strategy to retrofit old FPSOs to extend the life of mature fields, with the P-35 and P-37 as initial targets. This new initiative could see projects in the Campos basin, such as Barracuda-Caratinga and Marlim Sul-Marlim Leste, which were being tendered for newbuild floaters, reconsidered for retrofitted hulls. The company aims to have engineering studies ready upon signing the EPRD contract for the P-37 to assess the feasibility of such a retrofit. A critical condition for board approval of any modernization is that no more than 10,000 tonnes of steel plates from the hull require replacement.

Contract Details and Vessel History

The offered contract for the P-37 decommissioning is 570 days long, with a potential 180-day extension if the optional P-35 disposal is awarded to the same contractor. The P-37 hull was originally fabricated in 1976, converted into an FPSO in 1999, and produced in the Marlim field for two decades in about 905 meters of water before being placed in hibernation in 2019.