Brazil's Petrobras has cancelled tenders for its P-61 and P-63 offshore oil production platforms after deciding that the prices bid on the Papa Terra project were outside its budget parameters.
In a written statement, Petrobras said it considered price proposals for supplying the TLWP P-61 to be too high "given current market conditions."
Petrobras added that alternative development solutions for developing the Papa Terra field will now be studied.
Petrobras and consortium partner Chevron have drawn up plans to develop the heavy oilfield in the Campos basin using a TLWP and an FPSO, handle up to 180,000 barrels per day of crude.
Sources involved in the bidding process related that a communication was received from Petrobras last week stating that bids received for the P-63 have also been disqualified as "too high".
Modec Int'l, Floatec and SBM Offshore had all submitted bids for platofrm P-62. Modec was the leading candidate to supply the TLWP P-61 after offering a price of more than $1.72 billion against FloaTec's second-placed offer of $1.96 billion.
Petrobras has also reacted to the cancellation of the semisubmersible construction contract between Keppel FELS and Scorpion Offshore. The now-canceled semisubmersible was expected to begin a six-year contract with Petrobras in June 2012.
Petrobras said that the cancellation has no bearing on its agreement with Scorpion. Petrobras has requested clarifications from Scorpion and will continue undertaking all of the actions it considers pertinent to have the rigs available to fulfill its business plan.
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