Subsea 7 and SLB’s OneSubsea secure Petrobras Búzios 11 contracts as Brazil’s offshore expansion accelerates

In a major reinforcement of Brazil’s offshore oil ambitions, engineering group Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) and SLB’s (NYSE: SLB) OneSubsea division have been awarded critical contracts by Petróleo Brasileiro S.A. (NYSE: PBR) for the development of the Búzios 11 field, located in the ultra-deepwater Santos Basin. The latest contracts reflect both the scale and strategic urgency of Brazil’s ongoing push to expand production from its prolific pre-salt reserves, amid global pressure on upstream investment discipline.

The Búzios 11 project is part of Petrobras’s broader initiative to develop high-efficiency, low-lift cost assets with advanced subsea systems and FPSO integration. With global offshore oil investment rebounding after pandemic-era troughs, the deals highlight how EPC leaders like Subsea 7 and subsea technology providers like SLB are capitalising on multi-year spending cycles driven by energy security and capital efficiency mandates.

What Is Subsea 7 Delivering for Petrobras at Búzios 11?

Subsea 7 announced the award of a “super-major” contract—defined internally as exceeding $1.25 billion—for the full engineering, procurement, fabrication, installation, and pre-commissioning (EPFIC) of 112 kilometres of rigid risers and flowlines in the Búzios 11 field. Located approximately 180 kilometres off the coast of Rio de Janeiro at a depth of 2,000 metres, Búzios 11 is one of Petrobras’s flagship developments and one of the largest active subsea projects globally.

Engineering and project management have already commenced across Subsea 7’s hubs in Rio de Janeiro, Suresnes, and Sutton, while pipeline fabrication will take place at the company’s Brazilian spoolbase. Offshore installation activity is scheduled across 2027 and 2028, coinciding with the expected deployment of the P-83 FPSO, which is being built to handle 225,000 barrels of oil and 12 million cubic metres of gas per day.

Yann Cottart, Subsea 7’s Senior Vice-President for Brazil and Global Projects Centre West, said the award “reinforces Subsea 7’s strong execution capabilities and continued role in Brazil’s energy development.” The company’s proven track record in high-complexity deepwater projects was cited as a key factor in the win.

What Is SLB’s OneSubsea Providing Through Its Petrobras Agreement?

In parallel, SLB confirmed that its OneSubsea division—a subsea production joint venture—has secured a multi-million-dollar contract from Petrobras, marking its sixth consecutive subsea tree contract for the Búzios field since Búzios-6. The agreement includes the supply of 15 subsea trees, electrohydraulic distribution units, and support for installation, commissioning, and maintenance services.

OneSubsea will manufacture the equipment at its Taubaté plant in São Paulo, with first deliveries expected in Q2 2025, while lifecycle support will be handled via its Macaé service base in Rio de Janeiro.

Mads Hjelmeland, SLB’s Director for Subsea Production Systems, said the company’s in-country expertise and established manufacturing infrastructure made it a reliable long-term partner to Petrobras. He added that the new contract would enable SLB to continue delivering high-integrity subsea infrastructure at scale.

Why Is Búzios 11 Critical to Brazil’s Pre-Salt Production Ambitions?

First discovered in 2010, the Búzios field is now one of the largest ultra-deepwater oil fields in the world and a central component of Petrobras’s pre-salt portfolio. With over 10 billion barrels of estimated recoverable reserves, the Búzios field supports a long-term production roadmap underpinned by multiple FPSOs and subsea tiebacks.

The P-83 FPSO, scheduled for deployment by 2027, will represent the latest in a series of vessels designed to boost Brazil’s offshore production. Petrobras has adopted a replicable FPSO strategy, enabling economies of scale and faster development cycles. Búzios 11 is the latest chapter in this model, integrating advanced subsea systems from global providers with local fabrication and offshore infrastructure.

This approach supports Brazil’s goal of maintaining sub-$40/barrel breakeven prices, positioning it competitively against both U.S. shale and Middle East producers in the energy transition era.

How Are These Contracts Impacting Subsea 7 and SLB Stock Sentiment?

Subsea 7 (Oslo Børs: SUBC)

Subsea 7’s stock has appreciated to NOK 159.70, a 22% rebound from its 52-week low of NOK 130.90. The company’s Q1 2025 results saw revenue up 10% YoY to $1.5 billion and adjusted EBITDA rising 46% to $236 million, underscoring its high project margin profile. Its order backlog now stands at $10.8 billion, offering strong revenue visibility for 2025 and beyond.

Analysts tracking the European EPC space note that Subsea 7 is well-positioned to capture more pre-salt work and maintain positive free cash flow despite macro volatility. Institutional buying in Nordic markets has increased, suggesting upward revisions to earnings forecasts are likely. The consensus outlook leans “Buy,” driven by predictable revenues and long-cycle energy investment themes.

SLB (NYSE: SLB)

SLB shares closed at $34.73 on May 2, recovering 2.93% from the previous session. While still trading 32% below its 52-week high of $50.94, recent subsea wins have injected optimism following a mixed Q1. SLB reported Q1 revenue of $8.49 billion (down 3% YoY) and EPS of $0.58, impacted by weakness in Latin America and Africa. However, North America revenues rose 8%, led by digital solutions and intervention activity.

Investor sentiment has improved marginally following the Búzios 11 contract news. Several institutional investors are reassessing subsea exposure within their portfolios, with many shifting from a “Sell” to “Hold” stance as SLB’s forward order book stabilises. Analysts are watching for better cost control and margin performance in upcoming quarters before issuing stronger ratings.

Petrobras (NYSE: PBR)

Petrobras stock rose 2.29% to $11.61 on May 2, outperforming broader Latin American peers. The company’s strategy of deepwater reinvestment coupled with high-yield dividend payouts continues to attract long-term investors. Despite political uncertainties, Petrobras has maintained strong free cash flows and upstream discipline.

With Búzios development accelerating, Petrobras has become increasingly attractive to income-focused funds and institutional buyers from Asia and Europe. The stock is widely rated as a “Buy” among dividend investors and emerging market energy specialists, supported by low debt leverage and high field productivity.

What Comes Next for Brazil’s Offshore Oil Sector?

The Búzios 11 awards mark another step in Brazil’s ambition to become a dominant offshore energy exporter. With global oil demand stabilizing and geopolitics reshaping investment flows, Brazil’s pre-salt production model—low-cost, high-volume, carbon-efficient—is increasingly favored by international energy investors.

Looking ahead, Petrobras is expected to continue its multi-FPSO deployment strategy with additional tiebacks and subsea installations across the Santos Basin. Both Subsea 7 and SLB are expected to benefit from future tenders, given their proven track records and local manufacturing capabilities.

Analysts anticipate a broadening of the subsea services market in Latin America, particularly as Brazil explores marginal field recovery and brownfield expansions. M&A interest in subsea fabrication and services may also increase, potentially boosting deal flow across EPC players and equipment suppliers.