One Energy magazine - November 2022

one

magazineenergy

EDITOR’S

NOTE

Rio de Janeiro is a city full of wonders. As from this edition of our magazine we will produce a series of articles to introduce to our qualified readers some places in town and on the countryside of Rio de Janeiro state. We expect to introduce places to our readers from abroad, but also possi bly surprise many of our fellow colleagues Rio residents with special stories and facts about those astonishing places we will be talking about. As a rule of thumb, the WSB Advisors team has been challenged to only write about places where we have been to, therefore you should expect that the ma gazine will feature pictures from members of our team on such places, as evidence that the mission has been accomplished as it should. We would hope that our series of articles can be captured by any visitors from within Brazil or coming from abroad as an interesting basis for a city and / or a country tour when the chance is served. We hope you will enjoy the reading we have prepared with a lot of care.

invested companies:

The

Energy talks

For this month’s edition of Energy Talks, WSB Ad visors welcomed our friends from Monjasa: Aline Vaz, Trader and Jonas Bruslund, Trading Director Americas.

Monjasa is a global partner in the oil and shipping industries with its core business focused on trading and physical supply of marine fuels and ship own ing activities on a global level. Monjasa supplies around 6 million tonnes of marine fuels yearly.

Aline, thank you for taking part on our series of interviews. You are today a seasoned professional of our industry. Tell us how you got started in the energy sector? I am a business administration graduate from Candido Mendes University. I started with an internship at Transpetro working at the SMS (safety, environment, and health) division and then moved to Cockett Marine Oil, also a fuels trading company to work as an administrative assistant for three months. After that I worked as a trader for the next eight years where I was responsible for national and international trades. Working in the industry, Monjasa caught my eye and I be came part of their team where I started as a consultant and later became a local trader in Rio de Janeiro, helping setting up our newly established office.

Monjasa recently acquired its own barge. What has been Monjasa’s operational experience? Were changes necessary when the purchase was completed? We are currently chartering a barge with a capacity of 1,700 Cbm. The operational coor dination is handled by our own Monjasa Op

erations department and we have been very thorough in running several trials and simulations ahead of completing our first stem.

It has been a very smooth process, as the barge is oil major approved and meets all off shore quality and safety requirements.

Monjasa is a relatively new player in Brazil. What has been your perception of entering the bunker market in Brazil thus far?

The maritime logistics in Rio de Janeiro can be challenging, but we have been doing our homework and are off to a positive start. Bra zil is a complex place to do business, and the bunker market is no exception. That be ing said, we are receiving very good support from a wide range of companies, which has been crucial for us to get the operation flow ing. We have been operating the barge for a few months now and already supplied several different customer segments with positive feedback all around.

We continue to expand our personal rela tions within the industry in Brazil, and we learn new things about the market every day, and we are not rushing things. We are here

to stay, have a long-term vision and aim to add value to our customers’ supply chain through quality bunker operations.

What are the expectations of Monjasa for the bunkering market in Brazil?

We are looking forward to further supporting the Brazilian offshore market, which is experiencing increased activity levels and demand curves. We are in close dia logue with various partners in the industry, including WSB Advisors and companies working across the offshore supply fleet and drilling and explorations projects. Consequently, we are confident that there will be a solid demand for our services and that it is a good time for Monjasa to enter the market.

As most players, Monjasa mainly supplies MGO. Are you getting ready or planning to start supplying VLSFO or other fuel types as well?

Looking ahead, there is no doubt that we have an interest in also supplying VLSFO in Brazil. However, we are also well-aware that we need to develop our business the right way, one step at a time, and we are confident that this is the true key to longterm success here in Brazil as well. That being said, we keep our eyes and ears open, and I think it is in the Monjasa-DNA to always discuss new market opportuni ties and turn these into maritime solutions.

Jonas, thank you for your time and availability on this interview. Being responsible for part of Monjasa’s operation in Panama and in Brazil, can you tell us the differences between the company’s operation abroad and in Brazil?

Monjasa is a Danish company established in 2002, and from the early days, we have been seeking out niche markets where Monjasa could make a real difference. Particularly West Africa and the Middle East, were the two main markets, but we have now expanded our physical opera tions to Panama, Houston, Colombia, UK, France and now also Brazil.

Brazil is another niche market, where it is key to think outside the box and be in the detail of every step of the supply chain. It is crucial to understand all elements of our customers’ demand to provide the best possible solution. The offshore industry runs on tight and costly schedule so timely supply and quality products are our top priorities.

And how does Monjasa does that, meaning, where is the difference?

Monjasa’s corporate purpose is headlined “Monjasa means personal business”, and we truly live by that. We always aim to make the business personal and challenging the status quo in order to provide the best possible service and solutions for our business partners.

Monjasa’s service levels remain the same from one market to another and It is hard to compare the business in Brazil to the rest of our operations, as we are just get ting started. In Panama for example, we have been active as a physical supplier for nearly 8 years, and currently supply around 100,000mts/month to the international shipping industry via our 6 tankers and barges. Brazil is a very different mar ket, but if we keep building relations and adding new competencies, who knows where we will be in 8 years from now in Brazil?

the rig market in 2022-2023

By Omar Darian

Driving across the Rio-Niterói bridge these days, three rigs could be seen. Many of us living in Rio de Janeiro, Niterói or landing at Santos Dumont airport may have noticed platforms anchored in Guanabara Bay from time to time. Sometimes one, two or even three as I witnessed last when driving across. In this article, we discuss the rig market latest developments in Brazil and what our industry expects for the upcoming year of 2023.

Therig market in Brazil today counts with 26 rigs under contract of which 17 are drillships and 9 are semi-submersible. The drillships are mostly allocated on large recoverable ultra-deepwater oil reserves, whereas the semi-submersibles mostly in the deepwater section. Brazil is a leading market for those rig types with a pe culiar characteristic of long term contracts (3+ years each) especially driven by the demands from Petrobras, the national oil company. Drill ships have become more popular due to their latest more affordable rates, flexibility to shift locations, their fit with a milder weather portfolio (especially when compared to the harsh environmental conditions i.e. from the North Sea) and dual drilling systems, featured on most units, which very efficient on ultra-deep water fields, amongst other advantages.

Semisubs can be equally fitting, but usually carry a higher mob and demob costs, due to the necessity of employment of tugs and at times anchor handlers (for non-DP units), and when chartered, virtually little difference on the rates compared to the drillships.

In 2022, rig owners managed to extend local contracts prolonging the stay of oil platforms in national waters. Such are the cases of Seadrill fixing their drillship West Saturn to Equinor (Ba calhau, just started drilling this week, 4 years firm, USD 380 million contract, or approximately USD 250k per day) in continuation from her employment in Sergipe-Alagoas basin for ExxonMobil. Maersk Drilling semi-submers ible Maersk Developer has been fixed to Shell Brasil (commencement expected Q2/2023, 90 days firm, USD 37 million contract, or about

USD 400k per day mob/demob included), in direct continuation of her current exploratory campaign for Karoon at Neon field, in Santos basin.

In May this year Petrobras issued a tender to charter up to 8 deep-water drilling rigs (water depths ranging from 2400m to 3000m) with commencement expected for 2023, spread around. Clearly Petrobras attempts to bene fit from their usual scale on hiring equipment but also come early to the market to join lower rates, considering the increase on de mand and rates already impacting the sector. The result of their tender confirmed 7 units awarded, 5 drillships and 2 semisubs. This award, however, does not translate into new platforms coming from abroad or a potential increase in the demand for offshore support vessels. The only unit on this pack coming from abroad is the Deepwater Orion. Otherwise, the other contenders with awarded contracts are drillships ODN II, ODN I, Brava Star and Deepwater Corcovado, with rates ranging

from USD 400k per day until USD 421k per day. Semisubs: Norbe VI and Ocean Courage, with rates ranging from USD 228k per day till USD 345k per day.

Independent oil operator PetroRio in parallel to their acquisition of Frade (formerly Chevron) and its FPSO, also acquired the 6th genera tion ultra-deepwater semi-submersible West Capricorn, from Seadrill. The unit joins 2020 acquired semi-sub “Atlantic Zephyr” formerly Petroserv, renamed “King Maker”.

With the addition of drillship Deepwater Ori on and the arrival of West Capricorn expected around Christmas, the year of 2023 rig count increases to 29 units as the year commences.

Looking ahead, Shell getting ready to develop Gato do Mato and Petrobras to develop the Equatorial margin, the number of rigs should remain stable in 2023 with a tendency of a slight increase as Petrobras moves to hire for Q4 2023 and for 2024.

Souce: Seadrill Linkedin

back in the game

By Wilson Nobre

The Brazilian offshore market is in the spotlight again: Daily rates increasing as demand peaks and local tonnage is soaked in, pushed mainly by, guess who? Petrobras.

As usual “en-bulk”, last month, Petrobras released three PSVs tenders: a Petrobras fleet tender to hire up to 20 (twenty) PSVs, with 4 years duration and commencement expected May or August 2023, plus; a Mero field tender to hire up to 4 (four) – likely 2 (two) vessels, with 2,5 years duration and commencement expected for August/September 2023, plus; a Buzios/Roncador fields tender with up to 11 (eleven) vessels, 3 years duration and delivery in 60 or 120 days from contract award (or around July or September 2023).

In addition, Petrobras issued a AHTS (TS/TO) tender to take in 2 (two) vessels in 4 years firm peri od with deliveries between July and September 2023; and one OSRV opportunity with 4 years firm contract period starting October 2023, for up to 4 (four) vessels.

Hard to follow? That totals up to 41 vessels divided into 35 PSVs, 2 AHTSs and 4 OSRVs.

the small letters

First and foremost, Petrobras is now required to, by force of Joint-Venture Agreements (JVA), split the use of their fleet. Hence, when one refers to “Petrobras fleet tender”, that means vessels hired to the general fleet of Petrobras which will be employed on the fields operated by Petrobras (with or without non-operating partners), that can be shifted around as planned by Petrobras’ operations teams.

The SEPs (Solicitação de Envio de Propos ta), or Request for Proposal, are those opportunities issued by invitation only aiming to serve a specific field operated as consortium, often related to the onerous cession rounds. In such cases Petrobras agrees to hire a pro prietary fleet to the field, whereas shuffling around vessels from their general fleet is somewhat limited, though not impossible. Fleet tenders and SEPs can both be on closed price method followed by negotiations as well as reversed auction with a final negotiation. It

is a Petrobras choice on each case. On both, the pre-qualification criteria can also be cho sen by Petrobras, which limits participants to those already qualified with Petrobras.

All of these rules are foreseen on the Petro bras manuals that are public and if you are interested on a breakdown or more details please get in touch with us.

The PSV opportunities came out as follows: the 20 general fleet and the Buzios Ronca dor PSVs are divided into PSVs 3000tdwt & 4500tdwt (multipurpose, fluid carrier & general cargo) and will be chartered according to a pre-defined priority order. Two of them shall mandatorily be fluid carriers in each oppor tunity. Buzios/Roncador also feature an oil carrier category. Mero should also hire within 3000’s and 4500’s according to a priority, un der a single technical specification closer to the multipurpose standard specs.

Worth mentioning that the last SEP process conducted by Petrobras was for Roncador. The opportunity was cancelled as Petrobras extended contracts with the best qualified bidders which were already employed with Petrobras.

As a matter of fact, Petrobras has ex tended many of their current contracts in direct negotiation with owners, whenever possible. If 2-3 years ago, extending a contract was nearly “forbidden”, as new tender round would most cer tainly deliver even lower day rates, as the market shifts around, relying on a new tender is now almost certainly im plying the costs will increase.

The contract extensions will mostly im ply on an increment on the daily rates, usually limited according to internal procedures to 25% of the current contract cost. On many occasions Petrobras has perceived that up to such raise is better than gambling on a new tender, where the outcome could be much worse (for Petrobras).

the devil is the details

The PSVs employed with charterers other than Petrobras are expected to be extended. The exact number, current contract expiry dates, vessel details and expected rates are a mystery we reveal to our closest friends. The vessels already employed with Petro bras are all expected to show on the new tenders, and the list is not only composed of vessels already employed as PSVs, but maybe, or possibly also those PSVs currently employed as OSRVSs…? Another secret shared with friends. Not every vessel in layup is a well-positioned competitor. The room for foreign tonnage exists, rather limited but not impossible. REB takes a lead. Petrobras’ projections for 2022 foresee USD 2 billion for the chartering of Brazilian vessels and USD 700 million for foreign vessels. Foreign flag mostly resides on higher complexity tonnage. Petrobras´ Business Plan points at around fifteen new FPSOs due to be installed in six new fields between 2022 and 2026.

If you want to know more about the vessel’s names, types, technical specifications and availability dates, please get in contact with us at: comercial@wsb-advisors.com

According to WSB’s proprietary data base WSB.One, a total of 38 (thirty eight) PSVs 3000tdwt and 4500tdwt shall be or become available by October 2023 in Brazil. 19 (nine teen) are currently in contract with Petrobras and the other 19 (nineteen) are either under charter with other oil companies or in layup. That counts against Petrobras aiming to hire up to 35 PSVs in total, or else 35 demanded against 38 potentially available.

Special cover: Elections

The2022 general election is concluded, and former president Lula (Luiz Inácio Lula da Silva) is now president-elect. For the first time in Brazilian history, a president is third time elected to the most important position in country.

The win was very tight and result of a disputed and very energetic race, on both sides. Lula is 77 years old, and it is impressive his resilience in two electoral shifts.

The challenge of the new administration re sides in further developing initiatives of the current government such as the reduction of bureaucracy and the weight of the state, incen tives to digitalization and transactions, manag ing inflation which currently counting with tax reductions which may not be fully sustainable on the long run, and record export sales of commodities.

To (hopefully) help steering the country in this direction, the general elections also produced mostly right-wing state governors, and first time in history a Congress that is, combining senate and chamber, of approximately 70% of central and right-wing members. If the federal administration will be led by the workers party (PT) in one hand, on the other hand it will have its checks and balances promoted by what many expect to be a more challenging parliament.

What can we expect in our Oil&Gas and Energy industry?

Petrobras being a mixed economy state run oil giant, it is expected that the new adminis tration will give Petrobras an increased lead role going forward. The energy segment is relevant part of the local economy and Lula as well as his supporters (in and out of PT) should prompt Petrobras to become a boost er of activity. Privatization of the oil national is

practically ruled out. It is almost certain that within upstream, the government may look back into leasing of offshore production units as means to speed up production with financing rates at a lower level.

The current model of construc tion of own production units shall continue with incentives, either direct or in form of legislation to stimulate certain local content. Too soon to guess percentages, but a re-discussion of major contracts and an incentive to the na val industry is expected. It could become handy, considering that the rates for rigs and vessels have started to develop in disfa vor of charterers, a newbuilding program for support vessels and incentives to build and/or commission larger units in country may prove economical, in the long run. Hit on the employment generation.

Within downstream the new administration may re-think the distribution system. It is not likely that past privatization processes shall be reverted, but processes that are not concluded or new shall not endeavor. A parallel solution with new distribution networks and equipment, owned and operated by Petrobras, is on the table. Refining is interconnected and the state sponsoring construction of refineries and infra structure through Petrobras or Petrobras and partnerships has the appeal of great volume of job posts and engineering, services, etc. ad dressing a dependency on importation of re fined products and the continued development of the local industry-base.

The on- and offshore wind agenda is also expected to gain attention, and the steps taken on the present administration shall be brought to conclusion. It is expected that a green agenda

will have a devoted attention of the new coun try leaders supporting president-elect Lula.

The coalition that helped elect president Lula is now, as opposed to his former mandates, also composed of social-democrats such as former president Fernando Henrique Cardoso and several of his closest supporters, vice-presi dent-elect and former São Paulo state gover nor Geraldo Alckmin, and the MDB party, one of the most relevant (central-wing) lead on this occasion by Simone Tebet, who also took part on the race. It is almost certain that Simone Tebet will have a relevant position on the formation of the new group. Tebet survived a strong internal dispute on her party to be part of the race, and on the second shift, was also resilient in supporting Lula to gather votes.

It will be the first real challenge of presi dent-elect Lula to accommodate his many supporters. His decisions shall reveal whether president-elect Lula will keep a positive agenda of efficiency and attractiveness of invest ment, foreign and national.

Praça Mauá and the Museum of Tomorrow

Rio de Janeiro is port town. What has become today one of the largest cities in all the Americas has started as a hub for many of the econom ic activities based on naviga tion. What a privilege it is to write about Rio de Janeiro from the shipping perspective, one of the main industries we serve as a company.

In the heart of shipping is Praça Mauá. The wonderful piazza of today has a very, very long story to tell. You can take this article to one of the many seating spots at the place and have a nice reading, and be admired with every building on the sur roundings, each one on its particular style, that will drag you through more than 200 years of history in a few min utes, and even drag you all the way into the future! Yes – a true time-capsule right there, in the heart of town, very close to our office.

Praça Mauá was first called Praça da Prainha (meaning square of the small beach), where some smaller ships would come in or anchor. In 1871 it was renamed Largo 28 de Setembro, the date corresponds to the enact of the Free Womb Law, guaranteeing the right to freedom of all those born of a slave mother. Rio as a port also served as support to slavery. Half a century thereafter, in 1910, a major reconstruction that took 6 years delivered the all new Praça Mauá, the larger, new quay then able to accommodate larger vessels for the merchant shipping trade

of the early years of the 20th century. Mauá as in Barão de Mauá, or Sr. Irineu Evangelista de Souza, one of the greatest Brazilian entrepre neurs pioneer in many business areas, including shipping, shipbuilding, rail transport, banking and many others. It is only fair that the square never had its name changed again.

Praça Mauá marks the start of Avenida Rio Bran co, and on the other side the start of the port of Rio de Janeiro, where the ships’ passengers ter minal survived and the older warehouses have now been transformed, lately hosting the Rio Oil & Gas exhibition which we have covered in our last magazine.

In 1930, next to Avenida Rio Branco, the con struction of the Art-Deco skyscraper “A Noite” was concluded. The 22 stores high-rise was the first of its style in the city and became a land mark of change in architectural style promoted in the city towards the north American city-centers and shifting away from the predominant European style the city had until then. Its architect, Frenchman Mr. Joseph Gire, is also responsible for other landmarks such as the Copacabana Pal ace Hotel and the Palácio Laranjeiras, headquarters of the Rio de Janeiro state government.

In the 50’s and until the 70’s Praça Mauá is sacri ficed. In a time where con crete and cars became apparently more valuable than history, nature and beauty, the square was dragged over by the noto rious Elevado da Perime tral, an elevated highway meant to connect downtown to Avenida Brasil: a silly, ugly, polluted as in toxins as well as noise road-to-hell, as in Chris Rea, or highway-to-hell, as in AC/DC. Unbelievable. The area was trashed.

In the 90’s, postmodern high rise, the Rio Branco 1, or RB1 is built. The building brings again the American spirit of downtown to Rio and elevates the otherwise decadent start of Avenida Rio Branco, while the notorious “A Noite” is only serving some govern ment divisions and slowly becoming very, very ugly, poorly maintained.

In 2014, as part of the operation Porto Maravilha, in connection with the Olympic games legacy, the elevated highway is – finally – de molished. In September 2015, Praça Mauá is reopen free from highways (diverted into a tun nel underneath) and ready to host many other points of interest.

Praça Mauá host the central passengers’ termi nal of the commercial port, the 1st Naval District, administration of the Brazilian navy. It also hosts the MAR Museum (Rio’s Art Museum) compris ing of the 1916 dom João VI Palace interconnected to the 1940 modernist building. The tram “VLT Carioca”, electric and noiseless (if you won’t consider the bling-bling horn annoying to many) crosses the Praça Mauá.

And if we promised you a time-capsule able to fly you into the future, well, that is all about the Museum of Tomorrow. The project by the out standing Spanish architect Mr. Santiago Cala trava is the most impressive example of the revitalization of the square. Its organic shapes were inspired by the bromeliads of the Botanic Gar den of the city. The museum occupies an area of 15 thousand square meters, surrounded by reflecting pools, gardens, a bike lane, and a lei sure area, all adding up to 34.6 thousand square meters of the Pier Mauá.

In the two previous editions we have covered electrification and other aspects of the efficiency humankind is seeking for. Museum of Tomorrow is an applied sciences museum which explores the opportunities and challenges which humani ty will be forced to tackle in the coming decades from the perspective of sustainability and con viviality.

Example of a well-succeeded partnership between public power and private initiative, over three million visitors since opening have visited with the museum. With Santander Bank as a Master Sponsor and a wide network of partner spon sors as - Shell, IBM, IRB-Brasil RE, Engie, Grupo Globo and CCR, the museum was originally conceived by the Roberto Marinho Foundation. Roberto Marinho was the founder and for many years president of the Organizações Globo, includ ing Brazil’s largest broadcast channel and one of the world’s largest media groups TV Globo and its communication companies.

Praça Mauá tells the story of Rio. It shows how more than two centuries of history can be right at our eyesight and quickly run through us on any walk on the street when we are rushing between meetings and agendas, just thinking we are passing at just any standard place. In the case of Praça Mauá it is very fortunate that history delivers such an impressive, nice place.

And by the way, if you though that sitting by at a bench in this place will be dangerous, think twice. Operation “Centro Presente” does not deliver perfection, but it has made this area and the greater part of Avenida Rio Branco a very safe promenade. It is always packed with tourists and business men and businesswomen travelling around. Grab a bite at Sterna Café right underneath RB1, we love it there.

Upcoming Events

In November

Seminário de Emprego de Rebocadores Portuários

November 9th

RB1

Breakfast in Rio: Offshore E&P opportunities in Brazil with Enauta and Technip FMC

November 10th

Rio Othon Palace

Fórum de Gestão de Reparos November 11th

IBP

Panorama Naval 2022 November 16th Firjan

SOBENA - 3º Workshop de Eólica Off shore E Energia Renovável do Oceano November 17th

Windsor Florida

X Seminário sobre Matriz e Segurança Energética Brasileira November 30th Centro Cultural FGV

Artist and track of the month

A recap from September

Sponsored by our Weekly Market Update (Click here for all weekly news)

Brass Ring from Hornbeck Offshore char tered for core sampling in Guyana. The ves sel is currently mobilizing at a yard in Niterói and will be departing for the contract within a week. Great deal achieved by Hornbeck.

Equinor produced its first oil from Peregrino C platform, their latest platform to enter pro duction in Brazil. This platform is part of the Peregrino Phase 2 which shall extend the life of the Peregrino field until 2040 adding 250-300 million barrels of oil. An important remark on this phase is that the carbon di oxide emissions per barrel of oil produced are expected to be halved. The project was initially planned to start in 2020 but was de layed due to the Covid-19 pandemic. Nev ertheless, the project did not exceed the original budget expectation.

Last Friday Petrobras disclosed the partial results for lots A and B of the Multiple AHTS 18.000 tender. The opportunity, originally opened to offers over one year ago, had one winning proposal on for each of the two lots.

AHTS Theseus Z was qualified by Petro bras in Lot A with a renegotiated day rate of USD 49.459,20, negotiated down from the initial USD 57.000,00 bid by the end of the reverse auction. In Lot B, Petrobras qualified Apollo Z for the AHTS-R scope, at an also discounted day rate of USD 65.057,90 from the starting USD 90.000,00/day pro posed in the reverse auction. Today was the last day for other bidders in the process to present any claims towards Petrobras´ award decision.

What’s going on

open opportunities

petrobras AHTS TS/TO

Petrobras recently released a tender for the chartering of up to 2 (two) 150 tons AHTS TS/ TO type for four years firm. Among the technical specifications, one item draws the market attention: “Battery (Safety) - DNVGL” or “Elec tric Hybrid - BV” class certified. This is the first time Petrobras actually requests a hybrid ves sel in a tender. Deadline to submit offers is November 17th 2022.

PSV mero

Petrobras has recently released a SEP (Solicitação de Envio de Proposta), or Request for Proposal (opportunities issued by invitation only aiming to serve a specific field operated as con sortium, often related to the onerous cession rounds) for the chartering of up to 4 (four) PSVs 3000 & 4500 DWT for their Mero field, with 2,5 years duration and commencement expected for August/September 2023. Deadline to submit offers is November 21st 2022.

PSV buzios/roncador

The SEP Buzios/Roncador fields targets the charter of up to 11 (eleven) multiple PSVs 3000 & 4000 DWT with 3 years duration and delivery in 60 or 120 days from contract award (or around July/ September 2023). Deadline to submit offers is November 23rd 2022.

petrobras OSRV

Petrobras issued a tender by closed dispute mode to charter up to 4 OSRV’s for a 4 years firm contract. The bid deadline is No vember 17th 2022.

equinor OSRV

Equinor reach out to the market seeking an OSRV with DP2 and 1050m3 oil recovery capacity. Commencement is prompt.

The opportunity had one winning proposal for each of the two lots. AHTS Theseus Z was qualified by Petrobras in Lot A with a day rate of USD 49.459,20. In Lot B, Petro bras qualified Apollo Z for the AHTS-R scope, at a day rate of USD 65.057,90.

What’s going on

Brazil Ride Bahia

This October in south Bahia, from Arraial D’Ajuda, a 7-stages challenge, 13.000 me ters of accumulated altimetry, and more than 600 kilometers to be beat, CNT – Café na Trilha competed and has been the main media coverage of the event, which is one of the largest mountain bike ultramarathons in the globe!

An event of this magnitude features an im pressive support structure and is rather ex clusive, as limited to “only” 500 of the great est enthusiasts of this sport, including world’s leading athletes from Brazil and from abroad, are in to participate.

After facing mechanical issues, climate challenges with delays on the schedule, starting in 07th after the prologue, up to 6th on the sec ond stage, 13th on the fifth stage, the team mended to finish the fi nal stage in 5th and remain qualified top 10 in the category.

With just one week after the event the audience of this coverage has

reached the historic record for the ultramar athon for the channel, with more than 300 thousand visualizations and record retention.

We wish to thank Audax ridden by Fernando, the Brazil Ride team on the person of Fabio Piva, Shimano for the mechanical support, Pousada Marambaia, Fisionoesporte phisi caltherapy and FourLab Nutrition.

Click here to access the playlist where you can check all videos.

A Westhon company

INTCOM @ ADIPEC Abu Dhabi

November starts with the world’s most influ ential gathering of energy industry profession als, ADIPEC 2022, hosted by the Abu Dhabi National Oil Company (ADNOC). More than 150,000 attendees from 160 countries joined the event this year, amongst which the two leading executives of INTCOM, CEO Alvaro Antunes and COO Georges Cabrita.

On the roadmap: Our increasing partnership with SAP and several meetings to fine tune directives and expansion plans for 2023; and also, meet and greet our Brazilian delega tion colleagues and companies always gently promoted and incentivized by Brazil’s foment agency Apex-Brasil with their traditional Bra zilian pavillion. Another successful mission.

A Westhon company

What’s

2024.

PSV 4500 Rem Mistral that just initiated her long term contract with Equinor. Together with Siddis Sailor, both vessels are under a bareboat charter with Grupo CBO.

AHTS 23000 Normand Sagaris departuring Guanabara Bay. She is under a three year firm charter with Petrobras.

Accomodation unit Aquarius Brasil entering Guanabara Bay for a planned dry-dock.

PSV 4500 Bram Buck. She is under a firm contract with Petrobras until May

FPSO outlook

By Raphael Montes

Historically, Brazil has always played a key role on the FPSO market . Ever since the initial discovery of the pre-salt in ultra-deep wa ters, the country has not only stood out in the number of FPSOs but also in featuring some of the largest projects in processing and pro duction capacity.

With Petrobras leading the pack, the employ ment of around 20 units until 2027 is expect-

ed. The demand comes mainly from pre-salt clusters of Búzios (currently Brazil’s second largest producing oil field according to ANP) and Mero. Nevertheless, demand will also come from revitalization projects set forth by Petrobras.

Let’s dive further into what we can expect for the coming years and how each project has been developing.

Souce: Petrobras

petrobras pre-salt santos basin

Buzios:

Within the next 5 years, in addition to the 4 units already producing, Petrobras expects to install and start operations of 7 already awarded new FPSOs in Búzios, of which 4 already under construction and 3 with contracts just signed by Petrobras. Búzios’ 5 and 6 are in more ad vanced construction stages. Búzios 5, named FPSO “Almirante Barroso” has safely arrived at BrasFELS, Angra dos Reis to complete the final commissioning phase. The first oil for the FPSO is estimated to Q1 2023. Búzios 6 named FPSO “Almirante Tamandaré”, is on completion of topside’s manufacturing in Chi na and Petrobras aims to have the FPSO in operation by the second half of 2024. FPSOs P-78 and P-79, or Buzios 7 and 8 were both awarded in 2021, with expected start of pro duction in late 2025 as reported by Petrobras.

Mero:

Following the first oil of FPSO “Guanabara”, Mero’s first definitive unit, in Q2 2022, and with 3 additional units already underway, Petrobras is set to keep the growing pace for Mero, aim ing to install one new unit on the field per year until 2025. Mero will be the 3rd largest produc tion asset of the pre-salt polygon, following Tupi and Búzios.

FPSO “Sepetiba” (Mero 2) is the next in line for Mero. Awarded in 2019, construction is progressing in Bomesc shipyard, China. The modules built at EBR in Brazil have already been shipped to China, where the topsides have been lifted onboard and integration/com missioning activities are ongoing. Petrobras’ project schedule for Mero 2 targets first oil and commencement of operations for the FPSO in the course of 2023. Mero 3, FPSO “Mare-

Itapu:

After Petrobras decided to reassign the P-71 platform to Itapu field back in 2020, the unit, originally designed for Tupi field, went through modifications and integration upon its arrival at Jurong Aracruz shipyard (EJA) in Brazil, pre paring for its deployment.

Particularly we reckon 2026 as a more realistic start window.

In Q3 this year, Petrobras signed the contracts for the construction of Búzios 9, 10 and 11. Re spectively named P-80, P-82 and P-83, pro duction start is expected by 2027.

Originally, Petrobras intended for 12 FPSOs in Búzios by the end of this decade, for a total production of 2 million bpd. Further in Buzios, Petrobras recently came to market with two tenders directed to the field, one for drilling rigs and another one for PSVs. Other tenders are also expected on EPCI contracts for the instal lation of Búzios 9, 10 and 11, with all contracts likely celebrated throughout 2023.

chal Duque de Caxias” is scheduled to start operations by the first half of 2024 and Mero 4, FPSO “Alexandre de Gusmão”, the last unit to be installed in Mero thus far, is under con struction in yards in China and Brazil, with es timated first oil for 2025.

The Mero cluster also became a magnet for demand of support and other services. From standard chartering of vessels to hiring EPC and integrated projects, such as the installa tion of SURF spreads and pre-mooring work for FPSO “Sepetiba”, Mero has currently two ongoing opportunities: an EPCI contract for the SURF of Mero 4 where SAIPEM stands alone as the sole bidder for the tender and an invitation-only tender to charter more PSVs to be engaged in supply operations with offers yet to be received.

P-71 recently sailed away from the yard to wards location, moving on to the next stage in preparation for the unit’s first oil: mooring and connection to the wells and subsea production system. Petrobras planned to have the unit’s first oil only by 2023 however, there is a sound possibility of anticipating it to December 2022.

petrobras campos basin

Additionally to pre-salt, Petrobras is looking favorably towards some mature fields in the Campos Basin. The company plans to invest in the redevelopment of assets including new wells, production systems and a few interventions in the subsea layout, to ensure operations on the long run and to avoid fur ther decline in production.

As part of this redevelopment project, Petro bras ordered and will install in 2023 2 new FPSOs at Marlim field. FPSO “Anita Garib aldi” and FPSO “Anna Nery” will replace the 7 platforms currently operating in Marlim. “Anna Nery” is already on final commissioning stage at BrasFELS while “Anita Garibal di” is enroute from China and will have its commissioning process completed in EJA upon arrival. Decommissioning of the 7 plat forms in Marlim is also in the plans with ac tivities running concurrently with and beyond the deployment of the 2 new FPSOs, until 2025.

Besides Marlim, two other assets are tar geted for redevelopment in Campos Basin: Parque das Baleias (IPB) and Albacora. IPB will have FPSO “Maria Quitéria” added to its set of 3 units already operating in the project. We expect the FPSO to be deployed at Jubarte Field more realistically in 2025. As for Albacora, after the divestment deal be tween Petrobras and PRIO failing, Petrobras opted to redevelop Albacora and released a tender for a new FPSO, replacing the two units currently in operation, namely P-25 and P-31. Assuming the tender process is final ized by 2023, we would expect to see this new FPSO operating in Albacora by 2027.

Further, Petrobras is analyzing additional projects in Campos Basin, such as Marlim Sul, Marlim Leste, Barracuda, Caratinga and Roncador, with the latter already engaged in activities to enhance oil recovery with new wells and a study to possibly replace the cur rent platforms. The concession of the field was recently extended until 2052.

petrobras sergipe aguas profundas (SEAP)

Ocyan’s being the only proposal received for the P-81 EPC tender, the first platform to be deployed and develop offshore fields at Sergipe-Alagoas Basin, Petrobras officially cancelled the opportunity due to economic rea

sons (target not reached). Petrobras is now re-evaluating how to proceed with the devel opment of the field. With this challenge, the start of operations of SEAP will inevitably be delayed into 2027 or later..

enauta atlanta

Upon Enauta’s Final Investment Decision (FID) for a definitive production system for the Atlan ta field reached out, the company concluded the purchase of FPSO “OSX-2” and entered an agreement with Yinson to modify and adapt the unit with Atlanta field’s characteristics. At the current pace, the forecast for the kick off

in production is 2025. Relevant modifications on the originally turret moored unit are in deep discussion, with a new spread moored concept prevailing, and the need to adapt and cope with an arrangement inclined to the Petrobras model of offtakes with DP shuttle tankers and STS (ship-to-ship) transfers.

BW maromba

back in 2019 and thus becoming the operator of the field, BW Energy decided to push for ward with a phased development of the field

and acquired FPSO “Polvo”, to be upgrad ed and redeployed on the field. First oil from Phase 1 of the project is expected by 2025.

equinor bacalhau

Equinor officially awarded the EPCI contract for their Bacalhau FPSO last year and the company recently started the development of the field with drilling activities by drillship “West Saturn”. Bacalhau will also feature various

subsea activities throughout 2023 and 2024 with the installation of SURF spreads. The be ginning of operations for the FPSO in the presalt field should take place in 2026.

shell gato do mato

This year Shell moved on to award a Limited Notice To Proceed (LNTP) for partners BW Offshore and Saipem for early stage engineer ing and supply of the FPSO for Gato do Mato field in pre-salt Santos Basin. Upon comple

tion of the LNTP, BW and Saipem also expect to be awarded a lease and operate contract by Shell for the EPCI of the FPSO, with expected delivery in 2026.

2023 2024 2025 2026 2027

Buzios 5

FPSO Almirante Barroso (Modec) 150Mbpd

Buzios 6

FPSO Almirante Tamandare (SBM) 225Mbpd

IPB

FPSO Maria Quiteria (Yinson) 100Mbpd

Buzios 7 p-78 (Petrobras) 180Mbpd

Buzios 9 P-80 (Petrobras) 225Mbpd

Itapu P-71 (Petrobras) 150Mbpd

Marlim 1

FPSO Anita Garibaldi (Modec) 80Mbpd

Mero 3

FPSO Marechal Duque de Caxias (MISC) 180Mbpd

Mero 4

FPSO Alexandre de Gusmao (SBM) 180Mbpd

Buzios 8 P-79 (Petrobras) 180Mbpd

Buzios 10 P-82 (Petrobras) 225Mbpd

Atlanta

FPSO Atlanta (Enauta) 50Mbpd

Bacalhau FPSO TBN (Equinor) 220Mbpd

Buzios 11 P-83 (Petrobras) 225Mbpd

Marlim 2

FPSO Anna Nery (Yinson) 70Mbpd

Mero 2

FPSO Sepetiba (SBM) 180Mbpd

Maromba

FPSO Polvo (BW Energy) 85Mbpd

Gato do Mato

FPSO TBN (Shell) 90Mbpd

Albacora FPSO TBN (Petrobras) 120Mbpd

construction awarded tendering planned

SEAP 1 P-81 (Petrobras) 120Mbpd

Crude tanker rates to stay strong in 2023

By Daniel Buckley

Prospects

for the crude oil tanker mar ket are expected to stay strong for at least the next year helped by low ship ordering, despite the loss of some trade from Russia due to Western sanctions, leading ship operators say.

Russia has increased exports to Asia, Africa and South America following the imposition of Western sanctions for its invasion of Ukraine. But the sanctions mean many tanker opera tors are reluctant, or unable, to transport those cargoes.

Nevertheless, tanker players say more longer haul shipments have replaced much of that trade into Europe ahead of looming restrictions on Russian shipments to the European Union.

That redirection of oil trade flows has led to

higher tonne-mile demand for tankers, espe cially for the Aframax and Suezmax oil tanker segments as many European companies look to source crude and oil products from more distant markets. Tonne miles are an indicator of shipping demand, measuring transported cargo volume multiplied by distance. As a re sult, Crude oil tanker rates in some segments have recently been up over 40% buoyed by extremely low inventories – both crude and products.

On a bright side of these long haul trends, the International Maritime Organization’s (IMO) low sulphur fuel regulation was a marked shift in the shipping industry’s efforts to reduce air pollution from ships.

Known as “IMO 2020”, the regulation put a new global limit on the sulphur content of bun

ker fuel used by ships, in turn reducing sulphur oxide (SOx) emissions which are harmful to human health, by some 85% and a new NASA study helps to visualize the benefits by show ing studying artificial “ship track” clouds, serving as pollution fingerprints.

The narrow clouds, which were first observed as “anomalous cloud lines” in early weather satellite images acquired in the 1960s, form when water vapor condenses around micro scopic pollution particles that ships emit as exhaust.

Drawing on nearly two decades of satellite imagery, researchers found that the number of ship tracks fell significantly after the new low sulphur fuel rules came into effect in 2020. COVID-19-related trade disruptions may have also played a smaller role. Less sulfur emis

sions means there were fewer aerosol parti cles released to form detectable ship tracks.

Scientists used advanced computing to create the first historical measurements of ship tracks. Using artificial intelligence, they were able to automatically identify ship tracks across 17 years of daytime images (2003-2020), as cap tured by NASA’s Moderate Resolution Imaging Spectroradiometer (MODIS) aboard the Aqua satellite.

The researchers therefore concluded that the new global fuel regulation played the dominant role in reducing ship tracks in 2020. A round of applause to this initiative!

A Westhon company

WSB Advisors is a leading advisory group with central offices in Rio de Janeiro, Houston and Paris. WSB is a Westhon Company. © WSB.One all rights reserved. 2022. Phone: +55 21 3545-0350 | E-mail: comercial@wsb-advisors.com | Address: Av. Rio Branco, 12, 19º andar - Centro, Rio de Janeiro