Renata Baruzzi said that the head of Petrobras' engineering, technology, and innovation department, Brazil, should be analyzing the appeal filed by India Shapoorjipallonji Energy this week in order to charter an off-shore oil production vessel.

Why it's important

The Indian company was only bidder to charter a production, storage, and offloading vessel (FPSO) for Petrobras Barracuda & Caratinga Fields. The oil company rejected it as being too expensive.

This would have been a first-time deal between both firms. The vessel was part of an overall revitalization plan in the Campos Basin where production is declining.

By the Numbers

The FPSO will have a capacity of up to 100,000 barrels per day (bpd), and up to 6,000,000 cubic meters of gas each day.

A BACKGROUND ADDITIONAL

Baruzzi said that if Petrobras rejects Shapoorji's appeal, it would be necessary to restart the bid process for the tender. This could cause a delay in the Barracuda Caratinga project. (Reporting and writing by Rodrigo Viga Gaier; editing by David Gregorio).

(source: Reuters)