Overview of SBM Offshore's Contracts with Petrobras

SBM Offshore has been awarded two contracts by Petrobras, valued at approximately $7.8 billion, to supply the P-87 and P-81 floating production, storage, and offloading (FPSO) vessels for the Sergipe-Alagoas Deepwater (SEAP) project off Brazil's northeast coast. These contracts cover the design, construction, and operation of the FPSOs, which will be built using SBM's Fast4Ward program, incorporating the company's 11th and 12th multi-purpose floater hulls. The deal underscores SBM's long-term partnership with Petrobras.

Technical Specifications and Production Capacity

The P-87 FPSO will have a processing capacity of 120,000 barrels per day (bpd) of oil and 12 million cubic meters per day (MMcmd) of natural gas. The P-81 FPSO will be slightly smaller, processing 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. Both vessels will be operated by SBM for six and a half years under a build-operate-transfer (BOT) model, after which operational control will transfer to Petrobras.

Infrastructure and Gas Export Pipeline

The FPSOs will be connected to an export pipeline for direct gas delivery to shore. Petrobras has launched a tender for a 134-kilometer pipeline with an export capacity of 18 MMcmd, which will link to a gas treatment facility in Barra dos Coqueiros municipality. This infrastructure is part of the broader SEAP project, which aims to transform Sergipe into the largest gas-producing state in northeast Brazil.

Investments and Decommissioning Plans

Brazilian President Luiz Inacio Lula da Silva announced over 70 billion reais ($15.8 billion) in investments in Sergipe state over the next five years, including 60 billion reais for the SEAP project. Additionally, Petrobras plans to spend approximately 12.5 billion reais by 2035 on decommissioning 26 fixed production platforms in the shallow-water portion of the Sergipe-Alagoas basin. This process, initiated in 2025, involves plugging and abandoning 169 wells and removing platforms and subsea structures.