Bloomberg News

Petrobras Delays Saipem and Technip’s Gas Plants, CEO Says

October 11, 2011

(Updates with share price in last paragraph.)

Oct. 11 (Bloomberg) -- Petroleo Brasileiro SA, Brazil’s state-controlled oil producer, delayed plans to use floating natural-gas plants supplied by Saipem SpA, Technip SA and SBN Offshore NV until after 2015, said its chief executive officer.

Petrobras has chosen to use pipelines to transport gas from fields in deep waters of the Atlantic Ocean to maximize the fuel’s value, CEO Jose Sergio Gabrielli told journalists today in London. A new pipeline will be online before the end of 2014 and Petrobras may use the floating plants after 2015 to help develop the largest oil discoveries in the Western Hemisphere in more than 30 years, he said.

Gabrielli said two bids were “attractive,” without naming the companies. The plants, which cost more than $3 billion, convert the gas into a liquid for transportation by ships.

Petrobras had been reviewing bids from France’s Technip, SBM Offshore of the Netherlands and Italy’s Saipem to build floating natural-gas units.

Petrobras rose 0.2 percent to 18.95 reais at 2:43 p.m. in Sao Paulo trading. The stock has fallen 31 percent this year, more than the 23 percent decline in Brazil’s benchmark Bovespa index.

--Editor: Robin Saponar

--Editor: Robin Saponar

--Editors: Robin Saponar, Dale Crofts

--With additional reporting from Karen Eeuwens in London.

To contact the reporters on this story: Eduard Gismatullin in London at Peter Millard in Rio de Janeiro at;

To contact the editor responsible for this story: Dale Crofts at

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