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Keppel Lands $2.9 Billion Contract to Construct One of the World’s Largest FPSOs

A view of a Keppel Corporation shipyard in Singapore January 19, 2016. REUTERS/Edgar Su

Keppel Lands $2.9 Billion Contract to Construct One of the World’s Largest FPSOs

Mike Schuler
Total Views: 6276
August 15, 2022

Singaporean shipbuilder Keppel Offshore & Marine has won a $2.9 billion contract to construct one of the world’s largest FPSOs for Brazil’s national oil company Petrobras.

The contract covers the engineering, procurement and construction (EPC) of P-80, a Floating Production, Storage and Offloading (FPSO) vessel that will go to work in the Buzios field in Brazil planned in the first half of 2026.

P-80 will be the second FPSO Keppel O&M is building for Petrobras destined for the Buzios field, one of the largest deepwater oil fields in the world. The first, P-78, was ordered in May 2021 for $2.3 billion and is currently under construction with delivery planned in late 2024.

Once completed, the P-80 will be among the largest oil producing platforms in Brazil and one of the largest floating production units in the world, with a production capacity of 225,000 barrels of oil per day (bopd), water injection capacity of 250,000 bpd, 12 million cubic meters of (Sm3/d) of gas processing per day and a storage capacity of two million barrels of oil.

Design and engineering will be carried out by Keppel O&M in Singapore, Brazil, China and India. The fabrication of the topside modules, which will weigh about 47,000 metric tonnes (MT) in total, will be spread across its facilities in Singapore, China and Brazil, with the integration and commissioning works to be completed in Singapore. Construction of the hull and accommodation will be carried out by CIMC Raffles in China. Keppel O&M will also undertake the final phase of offshore commissioning when the FPSO arrives at the Buzios field.

“We are pleased to be selected by Petrobras for a repeat order of yet another landmark FPSO vessel, which reaffirms our capabilities as the preferred development partner for complex turnkey projects,” said Chris Ong, CEO of Keppel O&M. “By leveraging our strong EPC capabilities and network of yards, as well as teaming up with leading industry specialists, we have been able to offer a win-win solution that is both cost effective for our customer and profitable for Keppel O&M and our partners.

Like P-78, the P-80 will be capable of capturing carbon and reinjection it back into the reservoir where it is stored, minimizing the need for gas flaring.

In addition to carbon capture, utilisation and storage (CCUS) capability, the P-80 will also be outfitted with 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.

“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. Our partnership with Petrobras in their decarbonisation journey over the years includes work on four other FPSO projects, which showcase various innovative sustainability features, and we look forward to build on our strong track record of delivering high quality vessels to them,” added Ong.

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