SAO PAULO, Oct 4 (Reuters) - Brazilian state-controlled oil company Petroleo Brasileiro SA confirmed it will relaunch the process to order a Floating Production Storage Offloading vessel to explore the presalt area, the company said in a securities filing Tuesday.
Petrobras said it cancelled a previous FPSO order because it resulted in prices above those practiced on the international market, according to the filing.
Petrobras, which together with a group of foreign companies owns the concession to explore Brazil’s offshore subsalt area known as Libra, expects production to commence in the second half of 2020 at that site. As a result, Petrobras aims to close the FPSO order in the first half of 2017, the filing said.
Libra, an area believed to contain 8 billion to 12 billion barrels of oil under the seabed, is being operated by Petrobras. The concession is also owned by Royal Dutch Shell Plc, Total SA, China National Petroleum Co, CNOOC Ltd and a Brazilian state firm known as PPSA. (Reporting by Ana Mano; Editing by Lisa Shumaker)