Petrobras and SBM Offshore have concluded negotiations for two FPSO vessels for the Sergipe-Alagoas Deepwater (SEAP) project, with contracts expected to be awarded imminently.

Contract Negotiations and Value

Following SBM Offshore's successful low bids in October, defeating rivals Shapoorji Pallonji and Ocyan, the parties finalized the commercial terms on 31 March. SBM's original bids were $4.11 billion for the P-87 (SEAP-2) and $4.34 billion for the P-81 (SEAP-1). Petrobras secured a small discount, resulting in a total contract value of almost $8 billion for both units. The award is pending final internal procedures at Petrobras.

Project and Contract Details

The FPSOs will be contracted under a build-operate-transfer (BOT) model, with Petrobras owning the units. The P-87 has a processing capacity of 120,000 barrels of oil per day and 12 million cubic metres of gas per day. The P-81 has a capacity of 120,000 bpd of oil and 10 MMcmd of gas. First oil from the P-87 is scheduled for 2030, followed by the P-81 in 2031. SBM will have a 6.5-year operating window for each FPSO under the BOT contract.

Deployment and Field Development

The P-87 FPSO will be deployed to produce from the Budiao, Budiao Noroeste, and Budiao Sudeste fields in blocks BM-SEAL-4, BM-SEAL-4A, and BM-SEAL-11. The P-81 FPSO will produce from the Agulhinha, Agulhinha Oeste, Cavala, and Palombeta fields in blocks BM-SEAL-10 and BM-SEAL-11.

Associated Infrastructure

The SEAP development also includes a 128-kilometre, 12-inch gas pipeline linking the two FPSOs to an onshore gas treatment facility at Barra dos Coqueiros. This pipeline will have a capacity to export up to 18 MMcmd of gas. Petrobras is expected to launch a tender for its construction later this year.