Petrobras P-88 FPSO Tender Overview

Brazilian state-controlled oil company Petrobras is set to receive commercial offers for the P-88 floating production, storage and offloading (FPSO) vessel in late July, with the bidding deadline extended from 6 July to 27 July. The vessel is part of a broader strategy to revitalize the Campos basin, aiming to boost output to over 1 million barrels per day by 2035. The Albacora project is a key initiative in this effort.

Competing Consortia and Market Interest

Five international groups are expected to compete for the P-88 FPSO contract. These include a partnership between Norway’s BW Offshore and Italy’s Saipem; a pairing of Malaysia’s MISC and China’s Himile; an alliance of India’s Shapoorji Pallonji, Brazil’s Ocyan, and Singapore’s Seatrium; a consortium of China’s Offshore Oil Engineering Company (COOEC), Portugal’s Mota-Engil, and China’s CenerTech; and a solo bid from Singapore-headquartered Yinson Production. Meanwhile, major floater specialists Japan’s Modec and Netherlands-based SBM Offshore are focusing on Petrobras’ separate Buzios-12 FPSO tender. Petrobras has expressed satisfaction with the strong interest shown.

Bidding Delay and Technical Modifications

The three-week postponement of the bidding deadline was to allow floater companies the option to use gas turbines supplied by a recently pre-qualified subcontractor, China’s Harbin Guanghan Gas Turbine (HGGT). Petrobras informed contractors of HGGT’s inclusion in its vendors list in late April, with modifications added to the tender’s general technical description. Petrobras stated the initiative aims to expand the supply base in markets with high technical complexity and capital investment, promoting greater competition, reducing supply risks, and increasing project efficiency.

Technical Specifications and Contract Model

The P-88 FPSO will have a processing capacity of 120,000 barrels per day of oil and 6 million cubic metres per day of natural gas, with output expected to begin in 2031 or later. The unit will be linked to 25 development wells (15 oil producers and 10 water injectors) and will have storage capacity for 1.24 million barrels of crude. The contract will follow a build-operate-transfer (BOT) model, granting floater companies an initial operating window of seven and a half years, with an option for Petrobras to extend by an additional seven and a half years before control transfers to the company. The vessel will revitalize operations in the aging Campos basin field and also produce from the Forno pre-salt reservoir within the Albacora ring-fenced area.