Petrobras expects 520,000 barrel-per-day increase through FPSO capacity expansion

Nov. 12 (PN) Petrobras expects to add at least 520,000 barrels of oil per day to its production capacity by expanding the capacity of its existing FPSOs. According to the company’s CEO, Magda Chambriard, this strategy will allow for the acceleration of additional production by four years, while also avoiding an estimated $10 billion to $12 billion in capital expenditures for the construction of new units.

During a press conference on third-quarter results, the executive explained that the company has already expanded the capacity of 11 FPSOs. One example cited was the P-78, which, according to Chambriard, has reached its peak production, exceeding its nominal installed capacity by 20,000 barrels per day.

The CEO highlighted that leveraging the productive capacity of pre-salt reservoirs allows for increased output without the need to build new FPSOs. This approach offers benefits beyond capital expenditure (Capex) savings, as it also accelerates the arrival of these additional oil volumes to the market.

Chambriard noted that the time elapsed between signing a construction contract and the delivery of a new unit is typically around four years. Consequently, by expanding the capacity of existing facilities, Petrobras is able to bring this additional production online four years sooner.

The company intends to replicate this initiative across five other units that are either en route or currently under construction: the P-80, P-82, P-83, P-84, and P-85. The P-80 is currently off the coast of South Africa, moving across the Atlantic Ocean, while the P-82 is in the vicinity of Mauritius. Meanwhile, the P-83 is en route to Brazil, with its arrival scheduled for the last day of January, according to the timeline mentioned by Magda. Construction of the P-84 and P-85 platforms is also ahead of schedule.

Combined, the planned expansions for these five units are expected to add more than 260,000 barrels per day to production capacity. When accounting for other platforms that—according to the CEO—have already had their capacities increased, Petrobras projects an expanded capacity of at least 520,000 barrels per day. Magda explained that expanding existing units avoids the need to build new FPSOs, which would have required an estimated investment of between US$ 10 billion and US$ 12 billion.