Petrobras Calls for New Tender for Rota 3 Subsea Natural Gas Pipeline

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Researched by Industrial Info Resources (Cordoba, Argentina)--In October 2013, oil producer Petroleo Brasileiro S.A. (NYSE:PBR) (Petrobras) (Rio de Janeiro, Brazil) cancelled the public tender for the Rota 3 subsea natural gas pipeline. The company expects to call for a new one in March 2014.

The original tender was cancelled due to high prices that were offered by competitors. Three companies were involved in the process: Saipem SpA (Milán, Italia), which offered $1.45 billion, and a consortium created between Allseas Group S.A. (Chatel-Saint-Denis, Suiza) and Odebrecht Oleo & Gas Ltda (Rio de Janeiro, Brasil), which together offered US$1.8 billion.

As with the tender date, construction, installation and operation dates for the project have changed. Pipeline installation is now expected to begin in 2015, and operations are expected to begin by the first quarter of 2017.

Petrobras' engineering department is now working to simplify the project scope and reduce its costs. The pipeline has an original projected length of 318 kilometers and is 24 inches in diameter. It will connect the new offshore Lula and Franco production fields in Santos Basin to the planned natural gas processing plant at the planned Comperj Refinery, in Itaborai City, Rio de Janeiro state.

With the new natural processing plant and pipelines, Petrobras expects to treat the natural gas discovered few years ago in the new offshore fields in Santos Basin. It also plans to increase its distribution capacity to the national natural gas pipeline network by 21 million cubic meters per day.

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