“This is a very important time. It's the time to cheer the naval and offshore industry on so it continues to grow, thrive, and most importantly be respected," says Foster.  Foster went on to say that prices must stay within a range of normal. “Petrobras can't wait. There is absolutely nothing that would justify us falling behind on our oil production curve. No contract that would put this at risk is a priority for us.”

Bids for the latest round will be issued Friday, this according to Formigli.  Proposals must be submitted no later than June 27.  Contracts are scheduled to start signing October 30.

Formigli could not stress enough the importance for the Brazilian industry to set competitive prices.  “The expectation is to sign these contracts on a competitive basis, and this is very important. We are always comparing Brazilian prices with foreign ones, and we are definitely not willing to sign contracts if there is a significant difference.”

146 vessels were to be constructed over the course of the seven rounds.  Local construction content vary between 50 and 60 percent, this depending of course upon the type of the vessel.

“At this point, we have managed to sign contracts for 87 of 146 vessels,” says Formigli.  Formigli says that of these 87 vessels, 61 are under construction and 26 are in operation already. Meeting deadlines ois of the utmost importance. “We are working hard with the companies to recover from any lags and to find permanent solutions.”

Contracts were signed for 13 vessels in round one, 27 in round two, 16 in round three, 23 in round four, and eight in round five. Of these, 76 vessels are PSVs (Platform Supply Vessels) and OSRVs (Oil Spill Response Vessels). Eleven are AHTS vessels (Anchor Handling Tug Supply).

Construction time frames are three years from the time of contract execution for PSVs and OSRVs, and four years for AHTSs. Contracts are valid for up to eight years. Minimum local construction content is 60 percent for PSVs and OSRVs, and 50 percent for AHTS vessels. For vessel operations, minimum local content is 70 percent.