Petrobras PBR is advancing Brazil’s offshore energy expansion with the award of contracts to SBM Offshore for two new Floating Production, Storage and Offloading (“FPSO”) units in the Sergipe-Alagoas Basin, according to ShippingTelegraph. The SEAP-I (P-81) and SEAP-II (P-87) projects are expected to play a key role in developing deepwater oil and gas resources and enhancing the country’s offshore production capabilities.
The agreement reinforces the long-standing relationship between Petrobras and SBM Offshore, combining the Brazilian energy company’s ambitious offshore development strategy with the contractor’s expertise in designing and operating large-scale FPSOs.
SBM Offshore to Design, Build and Operate Both FPSOs
Under the contracts, SBM Offshore will oversee the engineering, construction and operation of the two production vessels. While the Petrobras-led consortia will own the FPSOs, SBM Offshore will manage their operations and maintenance under separate agreements spanning an initial period of 6.5 years.
This model allows Petrobras to focus on field development while relying on an experienced offshore specialist to ensure efficient day-to-day operations. It also highlights the industry's growing preference for partnerships that combine technical innovation with long-term operational support.
Fast4Ward Platform to Streamline Project Execution
A defining feature of both projects is the use of SBM Offshore’s Fast4Ward program, which introduces standardized hull designs to simplify construction and reduce project timelines.
The company will deploy its 11th and 12th multipurpose new-build hulls for the SEAP-I and SEAP-II units, respectively. By using a proven design platform, engineering teams can focus on integrating field-specific processing systems without starting every project from scratch.
This standardized approach has become increasingly valuable as offshore developments move into deeper waters and require more sophisticated production facilities. Key benefits of the Fast4Ward concept include accelerated project execution, greater reliability and more efficient construction schedules.
SEAP-II Will Prioritize High-Capacity Gas Processing
The first vessel scheduled for delivery is SEAP-II (P-87), which is expected to enter service in 2030.
Designed to produce up to 120,000 barrels of oil per day, the FPSO will also feature an associated gas treatment capacity of 425 million standard cubic feet per day and a water injection system capable of handling 120,000 barrels per day.
The unit will operate approximately 80 kilometers offshore in water depths of around 2,500 meters, demonstrating the advanced engineering required for Brazil’s ultra-deepwater developments.
Its robust gas processing capability reflects Petrobras’ broader strategy of maximizing natural gas recovery alongside crude oil production, helping supply additional gas to regional markets.
SEAP-I Focuses on Long-Term Reservoir Performance
The second production vessel, SEAP-I (P-81), is scheduled for delivery in 2031 and will be deployed roughly 100 kilometers from Brazil’s coastline in similarly deep waters.
Like its sister vessel, it will produce 120,000 barrels of oil per day, but the design places greater emphasis on reservoir support through an enhanced 200,000 barrels per day water injection capacity. It will also process 355 million standard cubic feet of associated gas per day, ensuring efficient resource utilization throughout the project's operational life.
The complementary design of the two FPSOs allows Petrobras to optimize production across different field conditions while maintaining operational flexibility.
Why the Sergipe-Alagoas Basin Matters
Although Brazil’s pre-salt fields often receive the most attention, the Sergipe-Alagoas Basin has steadily emerged as one of the country’s most promising offshore regions.
Located off Brazil’s northeastern coast, the basin offers significant untapped hydrocarbon potential that can diversify national production and support energy demand. Petrobras' continued investment in SEAP-I and SEAP-II reinforces its commitment to advancing offshore resource development beyond the legacy producing assets.
The projects are also expected to contribute to regional economic activity by creating opportunities across engineering, marine services, logistics and offshore support industries during both construction and operational phases.
Partnership Built on Offshore Expertise
The latest awards further strengthen the collaboration between Petrobras and SBM Offshore, which has delivered numerous FPSO projects for Brazil over the years.
Commenting on the announcement, SBM Offshore chief executive officer Øivind Tangen said the contracts reaffirm its long-term partnership with Petrobras. Tangen noted that the advanced gas treatment systems required for these developments align with SBM Offshore’s technical expertise and will help increase gas availability in northeastern Brazil.
The continued collaboration reflects the confidence both companies place in proven engineering solutions for increasingly complex offshore environments.
Supporting Brazil’s Next Phase of Offshore Growth
The SEAP-I and SEAP-II developments illustrate how Brazil continues to invest in modern offshore infrastructure capable of supporting future production while improving operational efficiency.
As energy companies place greater emphasis on maximizing resource recovery and reducing environmental impact, advanced FPSOs have become central to offshore development strategies. Their ability to process oil and gas directly at sea reduces the need for extensive fixed infrastructure and enables production from remote deepwater reservoirs that would otherwise remain uneconomical.
For Petrobras, these projects represent another step toward expanding production capacity while strengthening domestic gas supply. For SBM Offshore, they reinforce its position as one of the industry's leading FPSO providers, with a proven track record of delivering complex offshore solutions.
With construction set to begin in the coming years and deliveries targeted for 2030 and 2031, the two FPSOs are poised to become important assets in Brazil’s evolving offshore energy landscape, supporting production growth and reinforcing the country's position as one of the world's leading deepwater oil and gas producers.
PBR's Zacks Rank & Key Picks
Currently, PBR has a Zacks Rank #5 (Strong Sell).
Investors interested in the energy sector might consider some better-ranked stocks, such as Par Pacific PARR, Cheniere Energy LNG, both sporting a Zacks Rank #1 (Strong Buy), and Delek US Holdings DK, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Par Pacific is valued at 3.82 billion. It is a diversified energy company that owns and operates petroleum refineries, logistics assets and retail fuel businesses across the United States. Par Pacific focuses on refining, transporting and marketing fuel products while serving regional markets with reliable energy solutions.
Cheniere Energy is valued at $55.03 billion. It is a leading U.S. producer and exporter of liquefied natural gas (“LNG”), supplying energy to customers across more than 40 international markets. Cheniere Energy operates major LNG export terminals in Louisiana and Texas and focuses on providing reliable, lower-carbon energy solutions
Delek US Holdings is valued at $3.88 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.
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