Sembcorp Marine (SGX: S51) has landed a $3 billion contract for a newbuild FPSO for Petrobras.
The P-82 FPSO (floating, production, storage and offloading) vessel will be used at the Brazillian state-owned operator’s Buzios field, about 111 miles off Rio de Janeiro in the prolific Santos Basin.
It will be the 10th vessel to operate in the pre-salt field and one of the largest in the region, with production capacity of 225,000 barrels of oil per day and 12 million metres of gas.
The deal adds $3bn to the Singapore shipbuilder Sembcorp Marine order book, which stood at $1.7bn at the end of June.
Scheduled for delivery in H1 2026, the Sembcorp FPSO is part of a new generation of production facilities for Petrobras.
The high production capacity will be met with technologies to reduce CO2 emissions, Sembcorp said, while the unit will also be equipped with water injection capacity of 250,000 barrels per day and a storage capacity of two million barrels of oil.
Landmark project
Senior vice president and head of Sembcorp Marine rigs and floaters William Gu said: “We are grateful to Petrobras for selecting Sembcorp Marine to undertake this landmark project. Sembcorp Marine has a suite of EPC newbuild execution capabilities built on a strong track record of floating production facilities deliveries to FPSO operators and oil majors. Combined with our state-of-the-art yard facilities in Singapore and Brazil, we are well placed to undertake complex projects such as the P-82 FPSO.”
Sembcorp Marine has delivered 13 FPSO/FSO/FPU projects for deployment in Brazil, the last being in September 2019, where Sembcorp Marine’s wholly-owned and operated subsidiary Estaleiro Jurong Aracruz (EJA), delivered the newbuild FPSO P-68 to Tupi B.V. which is currently deployed at the ultra-deepwater Berbigão and Sururu fields in Brazil’s Santos Basin.
EJA is expected to deliver another newbuild FPSO, the P-71 in the last quarter of 2022 for deployment at the Itapu field.
Wong Weng Sun, president & CEO of Sembcorp Marine, said, “We are very pleased to be awarded this contract and to support Petrobras to grow its FPSO fleet in Brazil. We have been supporting Petrobras over the past decades and are thankful that Petrobras has entrusted yet another project, the P-82 FPSO to Sembcorp Marine.”
The deal comes as Sembcorp Marine and Keppel agreed a mega-merger back in April to create the world’s largest oil and gas shipbuilder.
However, with the deal going for shareholder approval in Q4 of this year, Sembcorp Marine shareholders have questioned the deal over fears of being diluted.