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2022 September 29   10:23

Keppel O&M secures repeat newbuild FPSO contract worth US$2.8b from Petrobras

Keppel Offshore & Marine (Keppel O&M)’s wholly owned subsidiary, Keppel Shipyard, has won a tender from Brazil’s National Oil Company, Petroleo Brasileiro S.A (Petrobras), to undertake the engineering, procurement and construction (EPC) of P-83, a Floating Production, Storage and Offloading vessel (FPSO), for about US$2.8b, according to the company's release.

Scheduled for delivery in 1H 2027, the P-83 is a repeat order of the P-80 FPSO that Keppel O&M secured in August this year. The contract will be on progressive milestone payments and adds approximately S$3.8b to Keppel O&M’s orderbook bringing it to about S$11.8b as at 28 September 2022.

As a repeated order, the P-83 will be identical to the P-80 in specifications and execution methodology. It will build on the synergies reaped from the P-80, including adapting the design and engineering as well as leveraging economies of scale in the procurement of materials. The fabrication of the topside modules will be replicated across Keppel O&M’s facilities in Singapore, China and Brazil, while the construction of the hull and accommodation module will be done by CIMC Raffles in China. Integration of the separate components will be carried out in Singapore, with the final phase of offshore commissioning works undertaken by Keppel O&M when the FPSO arrives at the Buzios field.

The P-83 will be the third FPSO that Keppel O&M is building for Petrobras for the Buzios field. In addition to the P-80, Keppel O&M is currently working on the P-78 FPSO which was awarded in May 2021.

When completed, the FPSOs will be among the largest floating production units in the world. The P-83 has a production capacity of 225,000 barrels of oil per day (bopd), water injection capacity of 250,000 bpd, 12 million cubic metres of (Sm3/d) of gas processing per day and a storage capacity of two million barrels of oil.

Petrobras operates the world’s largest carbon capture, utilisation, and storage (CCUS) programme. The P-83, P-80, and P-78 FPSOs will be equipped with green technologies such as CCUS to separate the carbon, reinject it back into the reservoir where it is stored and minimise the need for gas flaring. The FPSOs will also feature 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 O&M has delivered a significant number of projects for Brazil and Petrobras over the years, including FPSOs, production platforms, Floating Storage Regasification Units, drilling rigs and accommodation vessels, to support Brazil’s energy infrastructure. BrasFELS, Keppel O&M’s yard in Angra dos Reis, Brazil is currently also undertaking integration and fabrication work for two other FPSOs that will operate in the Sepia field and the Buzios field.

Keppel Offshore & Marine (Keppel O&M) provides total solutions to the offshore, marine and energy industries. Bolstered by a global network of yards and offices, it has extensive know-how across a wide range of capabilities – design & engineering, new builds, conversions & repairs, and support services.