PreSalt.com

29 Oct 2009 - by PreSalt.com - Source: Petrobras News

The CPI session held Wednesday (10/28) at the Senate, to discuss issues relative to the construction agreements for platforms P-52 and P-54, counted on the participation of Petrobras’ general manager for Project Implementation for Exploration and Production and Maritime Transportation, Antônio Carlos Alvarez Justi, and of Petrobras’ manager for Financial Planning and Risk Management, Antônio Gomes Moura.

Justi substituted executive manager for E&P Services, Erardo Gomes Barbosa Filho, who had initially been scheduled to participate. Justi was invited on account of the fact that at the time, he was in charge of the platforms’ construction and, thus, could assist in the commission’s work more satisfactorily.

The general manager started his participation presenting the behavior of Petrobras’ reserves since 1984, particularly in deep waters. He highlighted the complexity of producing in these conditions. "It is necessary to overcome technological challenges, to build rather complex units. We now produce at a depth of 2,000 meters (from the water line) in the Tupi field," he said.

The general manager said platforms P-52 and P-54 produce 180,000 barrels of oil per day each, 20% of Petrobras’ total production. He explained how the bidding procedures for the two platforms were held and said 12 companies participated in each bid. Justi also said that together the two platforms generate 25,000 direct and indirect jobs.

To Justi, the agreements had to be re-balanced in order to compensate for a significant increase in the value of the Real. "The rupture of the financial and economic balance created many difficulties in the cash flow of the companies that were hired to do the work. Petrobras then created a multidisciplinary technical group to, in partnership with outside consultants, find the best solution for the problem," said the general manager.

According to Justi, the proposals the workgroup that was created to analyze the issue made were to negotiate contractor requests case by case, to acknowledge the unbalance in the contracts, and to introduce mechanisms to neutralize future variations of the Real compared to the US Dollar, considering a 5% reduction in the contractor’s profit.

Justi then presented the evolution in the questions made by the Federal Court of Auditors (FCA), which considered the contractual impediment to revisions (a legal clause that juxtaposes the agreement); foreseeability (unforeseeable exchange variations, as acknowledged by the FCA itself); and avoidability (absence of provisions in the Brazilian law).

"The FCA had believed that the issue was foreseeable, but ended up determining the abrupt and adverse variation was in fact unforeseeable. All of the revisions Petrobras made are legal, and the solution that was adopted was widely discussed within the company, studied, and based on outside opinions," emphasized Justi.

The general manager reiterated that, in 1999, when there was a major devaluation of the Real, Petrobras sought credits among the contractors, as the scenario was just the opposite. "When the situation was the inverse, we defended our rights. And in the case of platforms P-52 and P-54, we acknowledged the contractors’ rights," he said.

Justi completed his presentation highlighting the fact that the platforms’ final price, even after the economic and financial unbalance was acknowledged, was appropriate. "IPA (Independent Project Analysis Incorporated) data showed that the final amounts are appropriate for the average global industry," he said.

After the CPI chair, João Pedro (PT-AM), took the session over, Jefferson Praia requested more information about the economic unbalance that led to an additional cost of $177 million. Justi explained again that the need to recompose the value of the agreements was due to additional costs caused by the more expensive Real.

He also clarified that signing agreements in Dollars is an ordinary practice in this type of bid. "It was an international bid, and companies from several countries participated in it, so it was necessary to adopt a common currency, and in these cases it is the US Dollar that is used," em emphasized.