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FUP has criticised Petrobras’ preference for the single-contract model in FPSO projects (Photo: Petrobras)

This is because the NOC showed a preference indicates that there will be orders to the local
for a single-contract model that foreign con- industry,” he commented. “For this, the bidding
tractors are better able to follow than Brazilian models will have to be changed in order to allow
contractors, he explained. the greater participation of Brazilian shipyards.”
“Although low, the percentage is not easy to As of press time, it was not clear whether
fulfill due to the bidding model determined by Petrobras’ executive team or the presidential
the company in recent years, which, in practice, administration had responded to the letter. FUP
favoured orders abroad ... The public notices reportedly discussed the matter with Lula’s tran-
follow single-contract rules, and as the values sition team – of which Prates and Bacelar were
are very high – around BRL15bn per platform both members – prior to Lula’s inauguration on
[about $3bn] – they exclude national companies January 1, 2023.
from the competition in favour of foreign con- One of the remedies mooted during those
glomerates, mainly shipyards in Asia,” he wrote. talks was a plan to split FPSO contracts into
He also pointed out that Petrobras’ strategic multiple parts. Rather than tendering single
development plan for the 2023-2027 period pre- contracts for entire vessels, the union argued,
served this single-contract bidding model and Petrobras should instead tender multiple con-
urged both Prates and Lula to consider revisions tracts for hulls, modules, platform integration
that would generate more FPSO-related busi- works and so on. FUP representatives asserted
ness for Brazilian contractors. Even though the that this approach would be more competitive
development plan calls for Petrobras to order 18 and would also give Brazilian companies a
new FPSOs between 2023 and 2027, “nothing chance to bid on a more equal footing. ™

ARGENTINA
OVL eyes Argentina’s gas potential

ONGC Videsh Ltd (OVL), the overseas arm sidelines of the India Energy Week 2023 con-
of India’s Oil and Natural Gas Corp. (ONGC), ference in Bangalore, aims to establish links
is showing interest in Argentina’s natural gas between the two countries’ research and train-
reserves. ing centres and promote Indian investment in
In a statement dated February 7, the Indian and cooperation with Argentina’s oil and gas
company revealed that it had signed a memo- sector, OVL said.
randum of understanding (MoU) with Argen- The statement spoke in general terms about
tina’s national oil company (NOC) YPF on cooperation in the hydrocarbon sector, but
cooperation in the area of upstream exploration Arun Kumar Singh, the chairman of ONGC,
and development activities. indicated that OVL was particularly interested
The document, which was finalised on the in Argentina’s gas reserves.

P12 www. NEWSBASE .com Week 07 15•February•2023