Petrobras picks SLB OneSubsea for huge offshore contract—what it means for Brazil’s oil future

SLB, a global leader in oilfield services, has secured a significant contract from Petrobras, Brazil‘s state-controlled oil giant, for two major ultra-deepwater projects in the Santos Basin. The deal, awarded to SLB’s OneSubsea joint venture, marks a key milestone in the ongoing development of Brazil’s pre-salt oil fields.

Major Contract Award

SLB’s OneSubsea joint venture has been entrusted by Petrobras to provide subsea production systems and services for the expansion of the Atapu and Sepia fields. This contract includes the supply and installation of pre-salt vertical trees, subsea distribution units, control systems, and pipeline infrastructure. The scope also encompasses related services, including installation, commissioning, and long-term support for these subsea systems.

Technological and Local Benefits

SLB OneSubsea will leverage its advanced, locally developed technology to meet Petrobras’ standards. Much of the equipment required for these projects, such as vertical trees and subsea control systems, will be produced and serviced at SLB OneSubsea’s Brazilian facilities. This local production capability is expected to ensure timely delivery and support Petrobras’ objectives for local content and job creation.

SLB OneSubsea secures major Petrobras contract for offshore Brazil projects

Mads Hjelmeland, CEO of SLB OneSubsea, highlighted the importance of this contract in strengthening their partnership with Petrobras. He stated that the award is a testament to SLB’s commitment to Brazil, emphasising that the use of locally developed technology enhances delivery efficiency and supports regional economic growth.

Impact on Petrobras’ Pre-Salt Investments

The contract will facilitate Petrobras’ continued investment in the pre-salt fields, with the addition of two new Floating Production Storage and Offloading (FPSO) platforms—P-84 for the Atapu field and P-85 for the Sepia field. Each FPSO is expected to have a daily production capacity of 225,000 barrels of oil and will process up to 10 million cubic meters of gas per day.

These projects are part of Petrobras’ broader strategy to enhance its offshore operations and expand its production capabilities in the pre-salt region, which remains a cornerstone of Brazil’s oil industry.

Expert Opinion

The awarding of this contract underscores the strategic importance of the Santos Basin to Brazil’s energy sector and highlights SLB OneSubsea’s pivotal role in advancing Petrobras’ pre-salt operations. Industry experts view this partnership as a significant boost for Brazil’s oil and gas sector, given SLB’s commitment to local content and technological excellence.

Experts suggest that SLB OneSubsea’s involvement in these ultra-deepwater projects will not only enhance operational efficiency but also foster further investment in Brazil’s energy infrastructure. The collaboration is expected to have a lasting impact on the region’s economic development and its position in the global oil market.

Recent Developments and Industry Context

Environmental and Regulatory Framework: The Brazilian government has been actively working to attract foreign investment in its oil and gas sector. Recent regulatory changes and incentives have been designed to make the sector more appealing to international players. This contract aligns with Brazil’s strategic objective to boost its oil production and reinforce its position as a leading global energy supplier.

Technological Innovations: The pre-salt fields in Brazil are located in ultra-deepwater zones that require advanced technology and expertise. SLB OneSubsea’s technological solutions, particularly in subsea production systems, are critical for overcoming the challenges associated with such complex environments. The use of advanced vertical trees, which are essential for managing the high pressure and temperature conditions of the pre-salt fields, exemplifies the cutting-edge technology being deployed.

Economic and Social Impact: The development of the Atapu and Sepia fields is expected to generate substantial economic benefits for Brazil. Beyond direct revenue from oil production, the projects will stimulate job creation, both directly in the oil and gas sector and indirectly through associated industries. The emphasis on local content also means that Brazilian companies and workers will play a significant role in these projects, further driving economic growth.

Summing Up

The major contract awarded to SLB OneSubsea by Petrobras represents a critical development in Brazil’s pre-salt oil sector. The collaboration promises to bolster local industry capabilities and supports Petrobras’ strategic goals for expanding its offshore production capacity. As SLB OneSubsea rolls out its advanced technology and services, the impact on Brazil’s energy landscape will be closely watched by industry stakeholders and observers.