The previous bid process, which began in August 2015, was canceled as it resulted in a proposed price way beyond what Petrobras and its partners were expecting.
It also required a local content commitment from the bidders in accordance with the production-sharing contract (PSC).
However, in cases where commercial proposals received are higher than international market rates, the PSC provides for an exemption from the local content demand.
This provision ensures, Petrobras said, that the project will be executed in a competitive manner, ensuring that investments for development of the Libra area are complemented efficiently in relation to schedule, budget, quality, and safety.
Accordingly, the Libra Consortium registered with ANP a local content waiver request related to the Pilot FPSO on Aug. 30, 2016 and started the new bid process last month.
This carries lower local content commitments, optimizing the construction performed in Brazil with no impact on the project’s cost or schedule.
Operations on the pilot project’s oil production system should now start during the second half of 2020, with the FPSO expected to be hired during 1Q 2017.
The Libra Consortium comprises Petrobras, Shell, Total, CNPC and CNOOC, with state-owned Pré-Sal Petróleo as manager of the PSC.