Petrobras Approves Final Investment Decision for Brazilian Deepwater Project with SBM Offshore Securing FPSO Contract

Petrobras has made a final investment decision for the SEAP I project in the Sergipe-Alagoas Basin, advancing development in Brazil’s new oil and gas frontier—the Sergipe deepwater area.

This approval follows the earlier sanctioning of the SEAP II module in December 2025. Combined investment for the two projects is projected to exceed $12 billion (60 billion reais) and is expected to yield more than 1 billion barrels of oil equivalent.

Petrobras stated that project feasibility has been enhanced through optimization and revised contractual terms agreed upon with suppliers. These improvements have increased economic returns, ensuring that both modules achieve a positive net present value across all corporate scenarios.

The company noted that these enhancements allowed for joint negotiations for the two floating production, storage, and offloading (FPSO) vessels—P-81 and P-87—which will be deployed on SEAP I and SEAP II, respectively, creating synergies and economies of scale.

SBM Offshore has been selected to construct both FPSOs under a build, operate, and transfer model. The contracts are expected to be signed in May 2026, pending governance procedures and partner approvals.

The two FPSOs will have a combined production capacity of up to 240,000 barrels of oil per day and the ability to process 22 million cubic meters of natural gas daily.

SEAP II is scheduled to begin production in 2030, with natural gas exports starting in 2031. SEAP I’s production timeline is expected to extend beyond Petrobras’s 2026–2030 business plan.

The project will involve the drilling and connection of 32 wells, along with the installation of a roughly 134-kilometer natural gas export pipeline—111 kilometers offshore and 23 kilometers onshore.

SEAP I will target light oil reservoirs in the Agulhinha, Agulhinha Oeste, and Palombeta fields within the BM-SEAL-10 and BM-SEAL-11 concession areas. Petrobras operates BM-SEAL-11 with a 60% stake, in partnership with IBV Brasil Petróleo, and holds 100% interest in BM-SEAL-10.

SEAP II will develop light oil reservoirs in the Budião, Budião Noroeste, and Palombeta fields within the BM-SEAL-4, BM-SEAL-4A, and BM-SEAL-10 concession areas. Petrobras operates BM-SEAL-4 with a 75% stake, alongside partner ONGC Campos Limitada, and holds full ownership of the other licenses.

Petrobras emphasized that the project is strategically important for boosting Brazil’s natural gas supply, strengthening energy infrastructure, and opening a new production frontier in the country’s northeast region.