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Keppel O&M wins $2.9bn Petrobras FPSO contract

Photo: Keppel O&M Keppel Shipyard_FPSO conversions
Keppel Shipyard
Singapore’s Keppel Offshore & Marine has bagged a $2.9bn FPSO contract with Petrobras in Brazil.

The Singapore yard group’s Keppel Shipyard has won an international tender from Petrobras for the engineering, procurement, and construction (EPC) of the P-80 FPSO. The contract is valued at around $2.9bn.

The P-80 is scheduled to be completed in first half 2026 and is the second new FPSO from Petrobras that Keppel has on its books following the P-78 which is currently under construction at Keppel Shipyard. The P-80 will be deployed in the Buzios field on completion.

Keppel the contract was structured on milestone payments and would be cash-flow neutral over the execution of the work. The new contract will add around SGD4bn to Keppel’s orderbook, close to doubling its value which stood at SGD4.4bn at the end of H1 2022.

Chris Ong CEO of Keppel O&M said: “Our first such project for the Buzios field, the P-78, is being built on this operating model. It is progressing on track with its schedule and within budget, and has been contributing to Keppel O&M’s earnings. 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.”

One of the largest floating production units in the world the P-80 will have a production capacity of 225,000 barrels per day (bpd).

The project will be carried out on a global basis with engineering and design in Singapore, Brazil, China and India, and fabrication of 47,000 tonnes of topside modules in facilities across Singapore, China and Brazil. Construction of the hull and accommodation will be carried out by CIMC Raffles in China.

The P-80 will include features such as carbon capture and reinjection of carbon back into the reservoir where it is stored. Ong added, “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.

Brazil and Petrobras has loomed large is Keppel O&M’s fortunes down the years – both good and bad. Keppel’s work in the past for Petrobras includes FPSOs, production platforms, Floating Storage Regasification Units, drilling rigs and accommodation vessels.

Keppel was embroiled in the Operation Car Wash corruption probe, the biggest ever in Brazil, and was fined $422m for corrupt payments made by a former agent of a US unit.

Keppel O&M is in the process of merging with Singapore rival Sembcorp Marine, which also has significant Brazil business interests, and transaction is expected to be completed in Q4 this year.