Brazilian oil giant Petrobras is on the verge of cancelling two Floating Production Storage Offloading vessels orders, Reuters has reported.

According to the news agency, Alexandre Lindenmeyer, mayor of Rio Grande municipality, where the FPSO units are being built, has said that the reason for the potential scrapping of the orders is the fact that the consortium building the units has asked for more cash.

Reportedly, the consortium, formed by Queiroz Galvão and IESA has required an additional 10 percent on top of the originally agreed price, as Petrobras has allegedly asked for several contract modifications for the FPSO P-75 and P-77 units respectively.

The Brazilian consortium is responsible for modules and integration with the hulls. The hulls of the two FPSOs were converted from Very Large Crude Carriers.

Furthermore, Reuters reports, Lindenmeyer has said that Petrobras and the contractors are set to meet on Wednesday to discuss a possible resolution of the issue.

The FPSO units, scheduled for delivery in 2016 and 2017, will have production capacities of 150,000 barrels per day each. The FPSOs are planned to be deployed at the Buzios field in the Cessao Onerosa area, offshore Brazil.

Source: www.offshoreenergytoday.com

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