Teekay, Odebrecht JV in front seat for Libra FPSO award

Teekay Offshore has announced that its 50/50 joint venture with Odebrecht was recently nominated by Brazil’s Petrobras as the lead commercial bidder on the Libra FPSO project in Brazil, and has been invited by Petrobras to conclude contract negotiations.

The FPSO unit is expected to be owned and operated by the Teekay Offshore’s 50/50 joint venture with Odebrecht and will service the Libra pre-salt field in the Santos Basin offshore Brazil, which is expected to start operations in early-2017.

The final contract negotiations are expected to be completed during the third quarter of 2014.

Drilling begins

Petrobras yesterday announced it had begun drilling operations at an exploration well at the Libra field.

The block covers approximately 1,550 square kilometers in water depths of around 2,000 meters (6,500 feet). The reservoir depth is around 3,500 meters below the sea floor (11,500 feet). The ANP estimates that total gross peak oil production could reach 1.4 million barrels per day. However, further appraisal is required to firm up this estimate, the development concept and a first oil date.

The Libra consortium is composed of Petrobras (operator and owner of a 40% stake), Shell (20%), Total (20%), CNPC (10%) and CNOOC (10%), together with Pré-Sal Petróleo S.A. (PPSA), the consortium manager.