Keppel Corp has landed the first of two potential multi-billion-dollar floating production, storage and offloading vessel (FPSO) contracts from Brazil oil major Petrobras.
The Singapore group confirmed Monday that it had won an international tender for the engineering, procurement and construction (EPC) of P-80 in a deal worth $2.9bn.
The P-80 will be one of the largest floating production units in the world with a production capacity of 225,000 barrels per day (bpd), water injection capacity of 250,000 bpd, 12m-cbm per day of gas processing per day and a storage capacity of 2m barrels of oil.
Scheduled for completion in the first half of 2026, the P-80 is the second FPSO that Keppel O&M will be building for Petrobras for the Buzios field in Brazil.
The first FPSO, P-78, is currently under construction by Keppel Shipyard.
Keppel Offshore & Marine chief executive Chris Ong said the contract reaffirmed Keppel’s capabilities as the “preferred development partner for complex turnkey projects”.
“By leveraging our strong EPC capabilities and network of yards, as well as teaming up with leading industry specialists, we have been able to offer a win-win solution that is both cost-effective for our customer and profitable for Keppel O&M and our partners,” he said.
“Drawing from our experience with the P-78, we are confident that we can further enhance the efficiency and economics of the P-80, as well as generate a substantial amount of work in Brazil with thousands of jobs for the country.”
The FPSO’s design and engineering will be carried out in Singapore, Brazil, China and India, with the fabrication of the topside modules split between facilities in Singapore, China and Brazil.
Construction of the hull and accommodation will be carried out by CIMC Raffles in China.
The P-80, along with the P-78 FPSO, will incorporate green features such as carbon capture and reinjection of carbon back into the reservoir where it is stored, Keppel said.
In addition to carbon capture, utilisation and storage (CCUS), the P-80 will also be outfitted with energy recovery systems for thermal energy, waste heat and gas, as well as seawater deaeration to reduce the consumption of fuel and the carbon emissions of the vessel.
Keppel told investors in late July 2022 that it was trying to hook offshore contracts from Petrobras for the P-80 FPSO as well as an option for a second FPSO in deals worth up to SGD 8bn ($5.8bn).
Keppel is currently in the process of spinning off its offshore and marine business and merging it with compatriot and local rival Sembcorp Marine.