Procurement of Flexible Risers

Petrobras is procuring a total of 206.4 kilometres of flexible risers for installation in multiple offshore fields in Brazil, encompassing both pre-salt and post-salt areas. The primary objective is to mitigate the phenomenon of stress-induced corrosion cracking from supercritical carbon dioxide (SCC-CO2), a significant issue in the pre-salt province. The tender has attracted commercial proposals worth approximately $920 million from three subsea players.

Tender Structure and Bidding Results

The tender is divided into three distinct lots. Lot 1 requires 71.5 kilometres of pipes, Lot 2 requires 96.5 kilometres, and Lot 3 requires 38.4 kilometres. The bidding results are as follows:

• Lot 1: NOV Flexibles was the low bidder at 1.69 billion reais ($313.4 million), followed by TechnipFMC at 1.85 billion reais and Baker Hughes at 2.02 billion reais.
• Lot 2: Baker Hughes was the sole bidder with a proposal of 2.79 billion reais.
• Lot 3: Baker Hughes submitted the top offer of 490.2 million reais, followed by TechnipFMC at 606.3 million reais and NOV Flexibles at 613.6 million reais.

Petrobras is expected to negotiate with NOV Flexibles for Lot 1 and with Baker Hughes for Lots 2 and 3.

Intended Use and Technical Requirements

The flexible risers and flowlines are intended for various applications, including oil production, gas injection, water injection, gas lift, oil export, and services. A specific requirement is for more resistant flexible pipes capable of mitigating SCC-CO2. The risers are planned for post-salt developments in the Campos basin, such as Roncador, Marlim Sul, and Jubarte phase four, but the majority will be deployed in pre-salt fields in the Santos basin, including Atapu, Berbigao, Buzios, Sapinhoa, Sepia, and Tupi.

Contract Details and Logistics

Petrobras is offering five-year contracts for each lot. The winning bidders must also provide a logistics base for storing and loading the equipment onto flexible pipelaying support vessels (PLSV).

Research and Development for SCC-CO2 Mitigation

This procurement occurs alongside technological order agreements signed earlier in the year with Baker Hughes and NOV Flexibles. These agreements involve research and development initiatives aimed at finding a definitive solution for SCC-CO2. The goal of this exclusive partnership, which includes Petrobras' research centre Cenpes, is to develop a commercial product for manufacturing gas production and gas injection pipes that can withstand high levels of CO2. Currently, only flexible risers that require short-term replacement have been qualified to mitigate the issue. Past failures due to SCC-CO2 on flexible risers used for gas reinjection in the Tupi and Sapinhoa fields prompted a shift in contracting strategy towards rigid riser-based lines for future projects in the play.