SBM Offshore takes the lead in the dispute for the Sergipe Deepwaters Project FPSO contracts

Oct. 16 – SBM Offshore has taken a step forward in the race for the construction and operation contracts for the two offshore platform ships (FPSOs) for the Sergipe Deepwaters project (SEAP I and II). Petrobras opened the bids from its competitors on October 15. The Dutch company submitted the best offers, with a total price of US$4.1 billion for SEAP II and US$4.3 billion for SEAP I.

The SEAP contract also included two other competitors: India’s Shapoorji offered a total price of US$4.3 billion, while Japan’s Modec proposed US$5.2 billion. In the SEAP I contract, SBM faced only one competitor: Shapoorji proposed a total price of US$4.6 billion.

The overall price is the judging criterion used by Petrobras to qualify bidders and takes into account the sum of the construction cost and the execution of other services.

From this point on, Petrobras begins the phase of verifying the effectiveness of the highest-ranking bids for SEAP II and SEAP I, with the aim of ensuring full compliance with the requirements of the tender.

The contracting modality will be Build, Operate, and Transfer (BOT), in which the contractor is responsible for the design, construction, assembly, and operation of the asset for an initial period defined in the contract. Subsequently, operation will be transferred to Petrobras. The process includes the bidding process for a firm unit for SEAP 2 and a purchase option for a second, similar FPSO, expected to be used for SEAP 1.

The firm unit (SEAP 2) is expected to enter operation in 2030. The units will have the capacity to process 120,000 barrels per day (bpd) of oil and up to 12 million cubic meters of gas per day, with the gas specified and exported directly for sale, without the need for additional onshore processing.

At the time of the bidding announcement, Petrobras stated that the choice of the BOT modality is a result of its strategy to seek new FPSO contracting models. This approach aims to provide a solution for financing oil and gas projects, considering that the unit will be owned by Petrobras, in addition to enabling the start of production as quickly as possible.

The Sergipe Deep Waters project covers deposits belonging to the Agulhinha, Agulhinha Oeste, Cavala and Palombeta fields, located in concessions BM-SEAL-10 (100% Petrobras) and BM-SEAL-11 (60% Petrobras and 40% IBV Brasil Petróleo). The SEAP 2 project covers deposits belonging to the Budião, Budião Noroeste and Budião Sudeste fields, located in concessions BM-SEAL-4 (75% Petrobras and 25% ONGC Campos), BM-SEAL-4A (100% Petrobras) and BM-SEAL-10 (100% Petrobras).