Yahoo Finance Petrobras (PBR) Awards $11B Contract to Seatrium for FPSOs
Petrobras PBR, Brazil's largest oil and gas company, has awarded a contract to Singaporean state-owned Seatrium, a leading offshore and marine specialist through an international tender. The deal, valued at approximately $11 billion, tasks Seatrium with constructing two new floating production storage and offloading (FPSO) vessels for deployment in Brazil's Santos Basin.
Cutting-Edge FPSOs for Atapu and Sepia Fields
The P-84 and P-85 FPSO platforms are scheduled to be installed in the Atapu and Sepia fields, which are located around 200 kilometers offshore from Rio de Janeiro, Brazil, in the eastern Santos basin. Each FPSO is designed to have a production capacity of 225,000 barrels of oil per day and a gas processing capacity of 10 million cubic meters per day. These high-capacity platforms are part of Petrobras' latest generation of FPSOs, tailored for enhanced efficiency and sustainability.
Commitment to Sustainability and Innovation
The P-84 and P-85 FPSOs are equipped with advanced technologies aimed at minimizing environmental impact and improving operational efficiency. Key features include:
Boost Oil Production: The two new FPSOs, P-84 and P-85 boast a significant production capacity. This will translate to increased oil output for Petrobras.
Zero Routine Flaring and Venting: These measures help in reducing greenhouse gas emissions and optimizing gas utilization.
Variable Speed Drives: These drives ensure optimal power consumption and energy efficiency.
CO2 Emission Control and Capture: Incorporating measures to effectively manage and reduce carbon emissions.
All-Electric Concept: Focusing on efficient power generation, this concept aims for a 30% reduction in greenhouse gas emissions intensity.
These innovations reflect Petrobras' dedication to sustainable practices, aligning with global efforts to combat climate change and reduce the carbon footprint of the oil and gas industry.
Global Collaboration and Streamlined Delivery
Construction of the P-84 and P-85 FPSOs will commence in the first quarter of 2025, with final delivery expected by 2029. The project will utilize Seatrium’s “One Seatrium Delivery Model,” which integrates operations and engineering support across its global facilities in Brazil, China and Singapore. This approach ensures seamless collaboration and maintains high-quality production standards.
Modules for the FPSOs, weighing a total of 60,000 metric tons, will be manufactured across these international facilities. The hull and accommodation units will be transported to Singapore for topside module integration and commissioning. After completion, the FPSOs will be towed to the Atapu and Sepia fields for offshore commissioning.
Strengthening Brazil’s Energy Infrastructure
Seatrium has a strong track record with Brazil, having delivered numerous projects, including FPSOs, Floating Storage Regasification Units, drilling rigs and accommodation vessels. The addition of the P-84 and P-85 platforms, alongside four other ongoing Petrobras FPSO newbuilds (P-78, P-80, P-82, and P-83), reinforces Seatrium's significant contribution to Brazil's growing energy infrastructure.
This agreement between PBR and Seatrium not only boosts Brazil’s offshore production capabilities but also highlights a shared commitment to sustainable and innovative energy solutions. As the world moves toward a greener future, collaborations like this are key for responsible resource development, balancing economic growth with environmental stewardship.
Conclusion
The Petrobras and Seatrium partnership for the P-84 and P-85 FPSO vessels represents a significant milestone in the advancement of Brazil's offshore energy capabilities. This deal marks a significant moment for both companies. Petrobras secures advanced technology to boost oil production while prioritizing environmental responsibility. For Seatrium, this $11 billion contract signifies a major win and a chance to showcase its expertise in building high-performance, sustainable FPSOs. The deal exemplifies a commitment to sustainability, innovation and global collaboration. As Petrobras continues to enhance Brazil’s energy infrastructure, the P-84 and P-85 platforms will play a key role in meeting the country’s energy demands while adhering to sustainable practices.
Zacks Rank and Key Picks
Currently, PBR carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Archrock, Inc. AROC, sporting a Zacks Rank #1 (Strong Buy) and SM Energy Company SM and Sunoco LP SUN, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is valued at $3.09 billion. The company currently pays a dividend of 66 cents per share, or 3.34%, on an annual basis.
AROC, together with its subsidiaries, works as an energy infrastructure company in the United States. The company operates under two segments — Contract Operations and Aftermarket Services.
Denver, CO-based SM Energyis valued at $5.53 billion. The company currently pays a dividend of 72 cents per share, or 1.5%, on an annual basis.
SM, an independent energy company, engages in the acquisition, exploration, development and production of oil, gas and natural gas liquids in the state of Texas.
Sunoco is valued at $3.5 billion. It is a major wholesale motor fuel distributor in the United States, distributing over 10 fuel brands through long-term contracts with more than 10,000 convenience stores, ensuring consistent cash flow.
SUN’s extensive distribution network across 40 states provides a robust and reliable source of income and the Brownsville terminal expansion will add to its revenue diversification.
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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
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