Petrobras and Seatrium Explore Gas Cooperation

en.Wedoany.com Reported - On August 27, Brazilian state-owned oil company Petrobras and offshore and marine enterprise Seatrium are in discussions regarding potential cooperation on offshore solutions in the natural gas sector. The CEOs of the two companies, Magda Chambriard and Chris Ong, disclosed this news at a media briefing following the naming ceremony of two Floating Production Storage and Offloading (FPSO) vessels.

The two FPSOs are about to set sail for the Buzios deepwater oilfield in Brazil. Chambriard said she is in discussions with Ong about how Seatrium can support Petrobras in addressing the "challenges of offshore liquefied natural gas" and participate in exporting natural gas to Asian and other markets.

Chambriard stated that Petrobras exports a significant volume of crude oil to the Asia-Pacific region, which is its top export destination; the region could also become the primary export destination for natural gas, as it has the fastest-growing gas demand globally. Ong added that the liquefied natural gas (LNG) market is an area of "great focus" for Seatrium. The company will not only have FPSOs but also hopes to see more asset types, combining personnel with integrated capabilities to achieve economic benefits across corresponding segments of the supply chain.

At the first-half earnings briefing for the period ending June 30, Ong said that Middle East conflicts have tightened LNG supply, highlighting the importance of energy security and thereby driving growth in demand for offshore gas solutions. He previously emphasized the increased demand for Floating Liquefied Natural Gas (FLNG) platforms and Floating Storage and Regasification Units (FSRU). FLNG units extract natural gas from subsea deposits and liquefy it directly, while FSRU vessels store LNG and convert it back to gaseous form for use.

The July first-half results briefing also revealed that Seatrium is seeking business opportunities worth S$700 million in FLNG conversions and newbuilds in Africa, while also identifying potential projects worth S$2 billion in the Asia-Pacific region, involving FSRU conversions and power plant vessels. Power plant vessels refer to ships equipped with onboard power generation facilities.

The two companies announced on Thursday that Petrobras' P-80 and P-82 FPSOs are expected to set sail for the Buzios oilfield in September and October, respectively. After a voyage of approximately 70 days, they are expected to begin production in the first half of 2027. The production capacity of the two vessels could increase Brazil's national oil output by 10%.

Each FPSO has a storage capacity of approximately 2.5 million barrels of oil, with a designed daily production capacity of 225,000 barrels of oil and processing of 12 million cubic meters of natural gas. Once operational, they will add 450,000 barrels of oil per day, equivalent to approximately 34% of the Buzios oilfield's existing installed capacity. The two vessels are part of a six-FPSO program that Seatrium is simultaneously managing for Petrobras. Once all six units are operational, they will collectively provide approximately 1.3 million barrels of oil per day, equivalent to about 30% of Brazil's average daily production of 4.5 million barrels in June 2026.

Seatrium has been in Brazil since 1999, having invested nearly S$2 billion to build local capabilities and support the country's offshore energy industry. The company recently resolved long-standing legal issues related to Brazil's 2014 "Operation Car Wash" corruption scandal. Singapore's Corrupt Practices Investigation Bureau launched an investigation into the company in 2023, and the Singapore High Court approved a deferred prosecution agreement earlier this year. Under the settlement, Seatrium will pay US$57 million to local authorities and avoid criminal prosecution in Singapore.