Keppel subsidiary wins US$2.9b Petrobras FPSO contract

KEPPEL Offshore & Marine (Keppel O&M), through its wholly owned subsidiary Keppel Shipyard, has secured a contract worth about US$2.9 billion, according to a Monday (Aug 15) press statement.

The contract was awarded by Brazil’s national oil company, Petroleo Brasileiro SA (Petrobras) on the basis of an international tender for the engineering, procurement and construction of P-80, a floating production storage and offloading vessel (FPSO).

Slated for completion in H1 2026, the P-80 is the second FPSO that Keppel O&M will be building for Petrobras for the Buzios field in Brazil, with the first FPSO, P-78, currently under construction.

The vessel is structured on progressive milestone payments and will be cashflow neutral during its execution lifecycle. It is expected to add over S$4 billion to Keppel O&M’s orderbook. The contract is not expected to have a material impact on the net tangible assets of earnings per share of Keppel Corporation for the current financial year, the company said.

Keppel Corporation added: “The P-80 will be one of the largest floating production units in the world with a production capacity of 225,000 barrels of oil per day, water injection capacity of 250,000 bpd, 12 million cubic metres of gas processing per day and a storage capacity of 2 million barrels of oil. When completed, the P-80 will be on par with the largest oil producing platforms in Brazil.”

The design and engineering will be carried out through Keppel O&M’s centres in Singapore, Brazil, China and India. It will fabricate the 47,000-metric-tonne topside modules in its Singapore, China and Brazil facilities, with integration and commissioning works planned for completion in Singapore. Construction of the hull and accommodation will be carried out by CIMC Raffles in China.

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Chris Ong, chief executive officer of Keppel O&M, 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.”

“As a leader in providing sustainable offshore energy and infrastructure assets, Keppel O&M is glad to be able to support Petrobras in reducing the carbon emissions of the P-80 and P-78.”

Keppel O&M has worked with Brazil and Petrobras in various projects over the years, including those for FPSOs, production platforms, floating storage regasification units, drilling rigs and accommodation vessels, to support the country’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. Shares of Keppel Corporation closed down 0.4 per cent or S$0.03 at S$6.96 on Monday, before the announcement.