Modec suspended from new Petrobras tenders

Brazilian oil major Petrobras has suspended Japanese floater expert Modec from taking part in competitive bidding for the next 13 months.

Modec said the main reason for this administrative penalty is due to losses to Petrobras that were apparently caused by the performance of three floating production storage and offloading (FPSO) vessels under charter services that MODEC has provided in the past and/or is presently providing to Petrobras.

The FPSOs in question are the FPSO Cidade do Rio de Janeiro MV14, whose charter contract expired in 2019, and two FPSOs currently under charter with Petrobras, namely, the FPSO Cidade de Niterói MV18 and the FPSO Cidade de Santos MV20.

Modec noted that Petrobras’ decision does not impact the execution of the current contracts in place between the two companies, and that it still sees Brazil as its main and most promising market.