Bacalhau oil field : Japanese firm MODEC wins FPSO contract from Equinor

MODEC has bagged a contract to deliver a floating production storage and offloading vessel (FPSO vessel) from Equinor Brasil Energia for the Bacalhau oil field (formerly Carcará oil field) in Brazilian waters.

The Japanese offshore floating platform provider has signed a sales and purchase agreement (SPA) in this regard with the Equinor subsidiary.

In December 2018, MODEC won a pre-front end engineering design contract (Pre-FEED contract) for the Bacalhau FPSO. The Japanese floating solutions provider has now been selected as the turnkey contractor based on its execution of the Pre-FEED contract and its subsequent response to the Invitation to Tender (ITT).

According to MODEC, the contract is based on a two-step award with the FEED and pre-investment commencing immediately. Under a lump sum turnkey contract setup, there will be an option for the execution phase which covers engineering, procurement, construction, and installation for the entire FPSO scopes.

The Japanese offshore floating platform provider said that the option for the contract is subject to the planned investment decision by Equinor for the Bacalhau oil field, which is due later this year.

The FPSO vessel from MODEC will be deployed at the Bacalhau field in Block BM-S-8, located in the pre-salt region of the Santos Basin, about 185 kilometers off the coast of Ilhabela/SP in São Paulo.

The Japanese offshore floating platform provider will handle the design and construction of the Bacalhau FPSO. Included in these are topsides processing equipment and also hull and marine systems.

The FPSO vessel will be moored permanently at a water depth of nearly 2,050 meters by a spread mooring system to be delivered by SOFEC, a MODEC group company.

Rendering of the Bacalhau FPSO to be used at the Bacalhau oil field. (Credit: MODEC, Inc.)

MODEC said that the Bacalhau FPSO will be the largest FPSO to be delivered in Brazil. Its topside will be designed to enable production of up to 220,000 barrels of crude oil per day, produce and inject up to 530 million standard cubic feet of associated gas per day, and also inject up to 200,000 barrels of seawater per day.

The minimum storage capacity of crude oil of the Bacalhau field FPSO will be 2,000,000 barrels.

MODEC revealed that the FPSO will be the second application of its M350 Hull, a next-generation new built hull for FPSOs, full double hull design, which has been developed to facilitate larger topsides and a greater storage capacity compared to conventional VLCC tankers, with a longer design service life.

The hull for the Bacalhau field FPSO will be constructed by Dalian Shipbuilding Industry in Dalian in China.

The FPSO for the Bacalhau oil field will be the 17th FPSO/FSO vessel for MODEC in Brazil and its ninth FPSO in the pre-salt region, apart from being the company’s first contract with Equinor.

Yuji Kozai – President and CEO of MODEC, commenting on Bacalhau FPSO contract, said: “We are extremely honored and proud to have been selected to provide a world class FPSO for Bacalhau project which is Equinor’s first pre-salt project in Brazil,” commented Yuji Kozai, President and CEO of MODEC.

“We believe this is the start of a long-term relationship with our clients Equinor, ExxonMobil and Petrogal Brasil and an opportunity that strengthens MODEC’s position as the leading FPSO service provider to the industry. We are committed to carry out this major project by cooperating closely with our clients in order to contribute to the advancement of the energy industry in Brazil.”

With a stake of 40%, Equinor is the operator of the Bacalhau oil field and is partnered by ExxonMobil and Petrogal Brasil, which hold stakes of 40% and 20%, respectively.

First oil from the Bacalhau field is planned to be drawn during 2023-2024.

Recently, MODEC won the Sangomar FPSO contract from Woodside Energy in Senegal and also the Barossa FPSO contract from ConocoPhillips in Australia.