Maersk Oil: Billion Dollar Project Reaches Major Milestone (Brazil)

The floating production unit Maersk Peregrino is in position and ready to work in the booming Brazilian offshore market. The transformation is the pinnacle of a comprehensive process and succeeded only due to excellent partnership and teamwork.

The Maersk Peregrino, which comes with a price tag on the heavy side of 1 billion USD and is the Group´s largest single investment in a vessel, is now properly hooked up at the oil field in the Campos Basin off the Brazilian coast.

Here it is planned to stay in position and produce oil for the coming up to 30 years. This major milestone in the extensive project marks the day where the unit commence a bareboat charter to the customer, Statoil, and it is indeed a day to celebrate the completion of more than three years of design, development, construction and a journey from Singapore.

“This is not just about the latest milestone, but successful achievement of several – such as completion of the two-year conversion work at the yard in Singapore, entry into Brasilian waters, approval by local authorities to sail to the field and being permanently moored at location,” says Stig Hoffmeyer CEO of Maersk FPSOs, who was in Rio visiting Maersk Peregrino last Friday during the hookup to the mooring system.

“All tasks which required hard work, meticulous planning and professional execution from the multiple teams around the world and the crew. They should all be extremely proud of their accomplishments.”

One last challenge in the final process was the customs clearance and Brazilian authorities’ approval which took place in Rio de Janeiro during the Christmas holidays. But the team in Rio was well prepared and performed a great partnership with the customer, Statoil. The result was a smooth inspection during the holidays and the Maersk Peregrino could proceed as the Groups first FPSO in the Brazilian offshore sector.

“Back in 2006 we decided to enter the Brazilian market due to the very attractive outlook and I am pleased to see this is now fulfilled. The Group’s emphasis on emerging markets and on Brazil is supported by the Maersk Peregrino and is also illustrated by Maersk Oil’s latest acquisition in the area,” says Claus V. Hemmingsen, partner and chairman of Maersk FPSOs.

The coming months are very busy with connecting to lines to the wells, testing systems and getting the Maersk Peregrino ready for the final milestone, which is the first time oil will be processed onboard.

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Source: Maersk, January  25, 2011; Image: Keppel