Sembcorp Marine secures $3 billion contract to build FPSO for Petrobras
Brazilian state-owned oil and gas producer, Petroleo Brasileiro S.A. (Petrobras) awarded Sembcorp Marine Rigs & Floaters Pte, a wholly-owned subsidiary of Sembcorp Marine, a $3.05 billion contract for the P-82 FPSO (Floating, Production, Storage and Offloading) vessel through an international tender.
The P-82 is the largest contract secured by Sembcorp Marine from Petrobras and will add more than S$4.25 billion to the Company’s order book of S$2.52 billion as at end June 2022.
The newbuild FPSO will be one of the largest vessels to be deployed in the Buzios field, an ultra-deepwater oil and gas field covering an area of 853 km² in the pre-salt Santos Basin, about 180 km off the coast of Rio de Janeiro, Brazil.
Scheduled for delivery in 1H 2026 with expected commercial operations in 2026, the P-82 will be the 10th vessel to operate in the pre-salt field, adding a production capacity of 225,000 barrels of oil per day and 12 million cubic meters of gas processing per day.
The P-82 is part of Petrobras’ new generation of production facilities, characterized by their high production capacity and by technologies to reduce CO2 emissions. 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.
“We are grateful to Petrobras for selecting Sembcorp Marine to undertake this landmark project,” said William Gu, Senior Vice President & Head of Sembcorp Marine Rigs & Floaters Pte Ltd. “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.”
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.”
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. The above contract is not expected to have a material impact on the net tangible assets or earnings per share of Sembcorp Marine for the current fiscal year.