Keppel O&M awarded US$2.3b contract to build FPSO for Petrobras

Keppel Offshore & Marine (Keppel O&M)’s wholly owned subsidiary, Keppel Shipyard, has secured a contract, on the basis of an international tender, from Brazil’s National Oil Company, Petroleo Brasileiro S.A (Petrobras), for the turnkey delivery of P-78, a Floating Production, Storage and Offloading vessel (FPSO).  

Scheduled for completion in late 2024, the FPSO will be customised for deployment in Brazil’s prolific Buzios field, described as the largest deepwater oil field in the world. With a production capacity of 180,000 barrels of oil per day (bopd), 7.2 million cubic metres of (mcbm) gas per day and a storage capacity of 2 million barrels of oil, the P-78 will rank among the largest in the global operating fleet of FPSOs.

The contract is on an engineering, procurement and construction (EPC) basis, with project execution spanning multiple locations globally. Keppel O&M will fabricate the topside modules weighing 43,000 metric tonnes (MT) at its shipyards in Singapore, China and Brazil, as well as undertake the integration and commissioning works of the FPSO. Keppel O&M’s partner, Hyundai Heavy Industries Co., Ltd. (HHI), will provide the 85,000MT hull and the living quarters for 240 persons. Upon completion, the FPSO will transit to the Buzios field, where Keppel O&M will carry out the final phase of offshore commissioning works. 

Mr Chris Ong, CEO of Keppel O&M, said:

“We are pleased to support Petrobras with another major FPSO where we are taking on a much larger scope than ever before. This project taps our well-recognised capabilities as a leading integrator of offshore energy and infrastructure assets, leveraging our strengths in engineering and project management, with a focus on higher value-adding work. 

“It is also aligned with the transformation plans which we had announced, where not all of the work will be done at our yards. We are excited to partner with industry leaders like HHI and DORIS Engenharia in Brazil, harnessing our complementary strengths and enabling Keppel O&M to expand our turn-key offerings across the value chain. At the same time, we are able to utilise our global network of operations and bring a sizeable amount of the work to Brazil, generating thousands of job opportunities for the local eco-system.”   

Keppel O&M has delivered a significant number of projects for Brazil and Petrobras over the years, which includes FPSOs, production platforms, Floating Storage Regasification Units, drilling rigs and accommodation vessels, to support Brazil’s energy infrastructure. 

BrasFELS, Keppel’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. 

The above contract will be on progressive milestone payments. It is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.