Keppel subsidiary wins $4 billion Petrobras contract

Keppel O&M has worked with Brazil and Petrobras in various projects over the years. PHOTO: REUTERS

SINGAPORE (THE BUSINESS TIMES) - Keppel Offshore & Marine (Keppel O&M), through its wholly owned subsidiary Keppel Shipyard, has secured a contract worth about US$2.9 billion (S$4 billion).

The contract was awarded by Brazil's national oil company, Petroleo Brasileiro (Petrobras), according to a Monday (Aug 15) press statement. It involves the engineering, procurement and construction of P-80, a floating production storage and offloading vessel (FPSO).

Slated for completion in the first half of 2026, the P-80 is the second FPSO that Keppel O&M will be building for Petrobras for the Buzios field in Brazil, with the first FPSO, P-78, currently under construction.

The vessel is structured on progressive milestone payments. It is expected to add over S$4 billion to Keppel O&M's orderbook. The contract is not expected to have a material impact on the net tangible assets of earnings per share of Keppel Corp for the current financial year, the company said.

Keppel Corp added: "The P-80 will be one of the largest floating production units in the world with a production capacity of 225,000 barrels of oil per day, water injection capacity of 250,000 barrels per day, 12 million cubic metres of gas processing per day and a storage capacity of two million barrels of oil. When completed, the P-80 will be on a par with the largest oil producing platforms in Brazil."

The design and engineering will be carried out through Keppel O&M's centres in Singapore, Brazil, China and India. It will fabricate the 47,000 metric tonne topside modules in its Singapore, China and Brazil facilities, with integration and commissioning works planned for completion in Singapore. Construction of the hull and accommodation will be carried out by CIMC Raffles in China.

Mr Chris Ong, chief executive of Keppel O&M, said: "Drawing from our experience with the P-78, we are confident that we can further enhance the efficiency and economics of the P-80, as well as generate a substantial amount of work in Brazil with thousands of jobs for the country."

Keppel O&M has worked with Brazil and Petrobras in various projects over the years, including those for FPSOs, production platforms, floating storage regasification units, drilling rigs and accommodation vessels, to support the country's energy infrastructure.

Shares of Keppel Corp closed down 0.4 per cent or S$0.03 at S$6.96 on Monday, before the announcement.

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