Keppel Offshore & Marine to deliver one of the largest oil production units in the world
Keppel Offshore & Marine (Keppel O&M), through its fully owned subsidiary Keppel Shipyard, has won a US$2.9 billion contract from Brazil’s national oil company, Petrobras. The contract, announced on Monday (Aug 15), involves the engineering, procurement, and construction of P-80, a floating production storage and offloading vessel (FPSO) for the Buzios field in Brazil.
Key Project Details
Completion Timeline: The P-80 is slated for delivery in the first half of 2026.
Capabilities: The FPSO will boast a production capacity of 225,000 barrels of oil per day, water injection capacity of 250,000 bpd, gas processing of 12 million cubic metres per day, and storage for 2 million barrels of oil.
Global Collaboration: Design and engineering will be conducted in Keppel O&M’s centres across Singapore, Brazil, China, and India. Topsides will be fabricated in Singapore, China, and Brazil, with integration and commissioning in Singapore. Hull construction and accommodations will take place at CIMC Raffles in China.
Financial Implications
The project, structured on progressive milestone payments, is expected to contribute over S$4 billion to Keppel O&M’s orderbook but will remain cashflow neutral throughout its execution. Keppel Corporation noted that the contract will not materially impact its net tangible assets or earnings per share for the current financial year.
Expanding Brazil Partnership
Keppel O&M’s CEO, Chris Ong, highlighted the significance of the project:
“Drawing from our experience with the P-78, we aim to enhance efficiency and create substantial employment in Brazil,” he said.
Keppel O&M is focused on reducing the carbon footprint of both the P-80 and P-78, aligning with its commitment to sustainable offshore energy solutions.
Keppel O&M has a long-standing partnership with Petrobras, supporting Brazil’s energy infrastructure through various FPSOs, production platforms, and other offshore assets. Its BrasFELS yard in Angra dos Reis, Brazil, is already engaged in integration and fabrication work for two other FPSOs for the Sepia and Buzios fields.
Market Impact
Shares of Keppel Corporation closed at S$6.96 on Monday, down 0.4% or S$0.03, before the announcement. This contract reinforces Keppel O&M’s position as a leader in delivering high-value offshore energy projects globally.
