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As previously mentioned in our weekly market update, MODEC has signed a contract with
Equinor to build the FPSO that will operate at BM-C-33 block, also known as Bacalhau field,
in the Campos Basin. The new unit to be built by MODEC will bring several innovations, some of
them related to carbon emissions such as the adoption of combined cycle gas turbines. With
such technology, the average CO2 intensity of the BM-C-33 over the life of the field will be
less than 6 kg per barrel of oil equivalent, while the global industry average is 16 kg. The BMC-33 project will also be the first in the country to process offshore gas and deliver it directly
to the national grid without the need of onshore processing.

Posidonia Shipping, a shipping Company (EBN) with activities in both offshore support and cabotage segments in Brazil, has concluded the acquisition of two Brazilian flagged PSVs. The vessels were under construction at EISA shipyard but were never finished due to financial struggles from previous owners and the yard itself. Posidonia expects the reactivation of the vessels to take around 15 months to complete with a grand total of USD 70 million worth in investments. 

Posidonia already has two other offshore support vessels operating in Brazil in partnership with German-owner UOS, the AHTS GH Navigator and AHTS GH Pathfinder. The Navigator has recently concluded a long-term charter with Karoon whilst the Pathfinder is still operating with Petrobras’s Cargo Transfer Vessel (CTV).

Enauta announced that it has found a new oil blend with “excellent petrophysical properties”
in the Atlanta field, in the Santos Basin. The Brazilian independent estimates the volume
at about 230 million barrels. The Brazilian company’s discovery is in the field’s Definitive
Production System deployment area which should start operating in 2024, with initial
production of 50.000 barrels of oil per day in Phase 1.

The new discovery is in well 9 -SHEL-19D-RJS drilled in 2006. This was programmed
with the objective of collecting information in conjunction with the drilling of well 7-ATL-7HA-RJS (“7HA”) which is part of a cloister of six wells under Phase 1 of the Atlanta Definitive System.

AHTS AH Valletta from owners CBO was chartered by Total Energies for 30 days firm
to replace Siem Atlas while docking. Vessel is expected to be available by June 15th and
currently sailing under Brazilian special register (REB) and has a 222 t bollard pull capacity

Petrobras informed that it will file a request with IBAMA, Brazil’s environmental protection
agency, to reconsider the decision to deny the company a license to explore an exploratory
well in block FZA-M-059, located at the Amazon River delta, in the state of Amapá.
Last week, IBAMA rejected Petrobras’ application, alleging a series of “technical inconsistencies”. The company however, claims that it meets all the requirements set forth in Brazilian legislation including the
technical requirements demanded by IBAMA itself. However, Petrobras stated that the
revised request will have the addition of new commitments, with an eye on the preservation
of the local environment as well as developing projects for the communities.

Petrobras released this week yet another PSV tender to the market, this time seeking to charter up to 9 vessels with various specifications. This opportunity is most likely a “second round” of the tendering process from last year that was expected to hire up to 20 vessels but, due to the lack of offers and incompatibility of windows, ended up with just 11 vessels awarded. Realistically speaking, Petrobras now wishes to fulfil their demands by chartering the additional tonnage required through this process, which has identical specifications, contract terms and duration as the previous one. However, the very same question from last year still  begs: Will there be enough vessels available to match Petrobras’ needs? Let’s see…

Two months after having production stopped in the Baúna field because of a containment
incident associated with the high-pressure flare on the FPSO Cidade de itajaí, Karoon
restarted production at 100% capacity. The identification of the leak source and necessary
repairs were made only two days after the shut down by Altera and Ocyan but the Australian oil
company decided to go through a full inspection and testing of the associated systems

Perenco has concluded the hook-up operation on the converted Pargo floating storage and offloading vessel (FSO). The company now plans to submit final documents to the country’s
regulatory authorities for the operational license of the FSO. The double-hulled vessel, built in
2004, has a storage capacity of 750,000 bbl. Earlier this year, production at Pargo cluster
which comprises the shallow-water Pargo, Carapeba and Vermelho fields reached 13.000
bbl/d of oil, up from 2.800 bbl/d when Perenco became operator in October 2019.

Oil production at Papa Terra cluster has been temporarily interrupted by 3R Petroleum due
to restrictions on the offloading system on FPSO 3R-3 as the unit reached the limit of
the available oil storage capacity. A damage was identified on the hose that is used in the
offloading operations (oil transfer from the production platform to the shuttle tanker). The
Company has already started the necessary procedures to replace the damaged section
which is estimated to take up to 10 days, allowing the asset to resume production

Shell contracted the Danish company Modern American Recycling Services Europe (MARS)
to perform the sustainable recycling of the “Fluminense” vessel, an FPSO that operated
for 20 years in the Bijupirá and Salema fields, in the Campos Basin. MARS is an EU-approved
recycling facility that was selected last year to decommission other FPSOs. The vessel is
expected to arrive in Denmark next year.

Shearwater geoservices has two new seismic acquisition vessels in Brazil. SW Diamond and
SW Duchess arrived in Brazil earlier this week to support seismic operations services by the
company. The global seismic service provider is working for Petrobras in Santos Basin.

Petrobras released at the beginning of this week another opportunity for large accommodation
vessels (UMS). The N-16 tender is set to charter one UMS of minimum 450 POB and 1000m² of
free deck area. Once more the tender allows for semisubmersible, cylindric and ship shaped
vessels, most likely due to a low availability of semisub units, which would severely impact
the competitiveness of a semisub-only tender.

The contract duration will be of 4 years firm, with the possibility of a 5-month extension.
The awarded unit will be granted a 175 days mobilization time after contract signature for
delivery in Brazilian waters and will be engaged in the maintenance schedule of several FPSOs
from Petrobras throughout the duration of the contract.