Keppel Inks $2.9Bn Deal To Build P-80 FPSO For Petrobras

Keppel Inks $2.9Bn Deal To Build P-80 FPSO For Petrobras
Keppel has won a tender from Petrobras for the engineering, procurement, and construction of the P-80 FPSO for about $2.9Bn.

Keppel Offshore & Marine has won a tender from Brazilian state-oil firm Petrobras for the engineering, procurement, and construction (EPC) of the P-80 FPSO for about $2.9 billion.

The deal was won by Keppel Offshore &Marine’s wholly-owned subsidiary, Keppel Shipyard. Scheduled for completion in the first half of 2026, the P-80 is the second FPSO that Keppel O&M will be building for Petrobras for the Buzios field in Brazil.

The first FPSO, the P-78, is currently under construction by Keppel Shipyard. The P-80 is structured on progressive milestone payments and will be cash-flow neutral during its execution lifecycle.

The P-80 will be one of the largest floating production units in the world with a production capacity of 225,000 bopd, water injection capacity of 250,000 bpd, 12 million cubic meters 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.

“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. 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 customers and profitable for Keppel O&M and our partners.”

“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,” Chris Ong, CEO of Keppel O&M, said.

The design and engineering of the FPSO will be carried out through its centers in Singapore, Brazil, China, and India. The fabrication of the topside modules which weigh about 47,000 tons 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 works when the FPSO arrives at the Buzios field.

The P-80, along with the P-78 FPSO, will incorporate green features such as carbon capture and reinjection of carbon back into the reservoir where it is stored. Both FPSOs are designed to maximize carbon reinjection and minimize the need for gas flaring.

The FPSO 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 decarbonization journey over the years includes work on four other FPSO projects, which showcase various innovative sustainability features, and we look forward to building on our strong track record of delivering high-quality vessels to them,” Ong added.

According to Keppel, the above contract is not expected to have a material impact on the net tangible assets or earnings per share of the company for the current financial year.

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