SBM Offshore has confirmed it will not take part in the tender process for two major floating production projects offshore Brazil after concluding its talks over the past few weeks with Petrobras.

The contractor said late last month (see last issue of DI, page?2) it was in talks with the operator to clarify its position over its participation or otherwise in the bid process for the provision of FPSOs to develop the deepwater Libra and Tartaruga Verde fields, after Petrobras CEO Maria das Gracas Foster told a Brazilian congressional committee hearing that SBM would not be considered while the contractor was under investigation by Brazilian senators for alleged bribery related to previous contracts in the country. An internal investigation by SBM has found no evidence of improper payments in Brazil.

However, based on the discussions with Petrobras, SBM said it will not be participating as an international contractor in the tenders for the two fields.

Asked by DI if that could mean SBM might still participate in the process perhaps as a consortium member, a spokeswoman for the contractor declined to provide further details, saying it was the company’s policy not to provide details on bidding activities.

The potential danger for SBM, in addition to its initial exclusion, is that if found guilty by the Brazilian Congress it could be excluded for a longer period than just these initial two project bids.

Libra covers an area of 1,500 sq km (560 sq miles), with the size of the oil column measured at 327 m (1,072 ft) by the first well drilled in the field area. Petrobras has indicated the field has the potential for multiple FPSOs. In the central section of the field, the Libra reservoir is estimated to be more than 800 m (2,624?ft) thick.

According to Petrobras’ executive manager for Libra, Anelise Lara, during a presentation given to the Brazil-Texas Chamber of Commerce in May, the initial plan is still for a well test pencilled in for December 2016.

A minimum exploration program comprising two wells and acquisition of a 3-D seismic survey needs to be completed before a declaration of commerciality can be made for Libra, which is due December 2017.

Lara indicated plans for up to 12 production systems – likely FPSOs – for Libra, each capable of producing 150,000 b/d of oil. “The first extended well test is planned to start in December 2016. The pilot system is scheduled to start producing in 2020. This pilot will be based on other typical pre-salt systems already on line. This will enable us to test different recovery strategies, considering the characteristics of the Libra reservoir,” Lara told the Chamber of Commerce delegates.

As DI also reported in its last issue, the Tartaruga Verde (Green Turtle) project 125 km (78 miles) offshore Macae will involve tendering for a new chartered FPSO for the 230 MMbbl Tartaruga Verde and Tartaruga Mestica oil fields in the Campos Basin.