MODEC hires Seatrium for Brazil-bound FPSO topside modules fabrication project

BrasFELS Shipyard (BrasFELS), a member of the Singapore-headquartered Seatrium Limited, former Sembcorp Marine Ltd before the merger with Keppel Offshore & Marine Limited, has won a contract with Offshore Frontier Solutions Pte. Ltd, a MODEC Group company, to undertake parts of the topside modules fabrication of a floating production, storage, and offloading (FPSO) vessel for an Equinor-operated pre-salt gas and condensate project in Brazil.

According to Seatrium, the FPSO topside modules fabrication is for the Raia project in Brazil, which is operated by Equinor on behalf of the consortium, and marks the eighth project collaboration between BrasFELS and MODEC, reflecting the long-standing partnership the two organizations have enjoyed for more than a decade.

Marlin Khiew, Executive Vice President, Oil & Gas (Americas), Seatrium, commented: “We are pleased to partner with MODEC on yet another FPSO topside modules fabrication project, affirming Seatrium’s position as a leading global player in FPSO newbuilds and conversions. Over the years, we have leveraged our deep engineering expertise, international yard footprint and strong track record to deliver over 260 floating production unit (FPU) and FPSO conversions & newbuilds, solidifying our market leadership in this product segment.”

Furthermore, the scope of work for the FPSO Raia comprises the fabrication of three modules: vapor recovery unit/flare knockout (VRU/ FLARE KO), oil separation and stabilization, and the flowline circulation and metering and utility systems. The project will be undertaken by Seatrium’s BrasFELS shipyard located in Angra dos Reis, Rio de Janeiro, Brazil, and is expected to start in the first quarter of 2024.

Once completed, the FPSO Raia will have the capacity to process 126,000 barrels of oil per day (bopd) and 16 million cubic meters of gas per day, with a storage capacity of 2 million barrels of crude oil. This FPSO will be deployed in the giant pre-salt area at the southern part of Campos Basin, approximately 200 kilometers off the coast of Rio de Janeiro, Brazil. The first project between BrasFELS and MODEC was the fabrication and integration of topside modules for the FPSO Cidade de Sao Paulo, back in February 2011.

This announcement comes after Saipem disclosed two new offshore contracts worth approximately $1.9 billion for work in the Americas. One of these deals is with Equinor for the Raia field development. Thanks to the award, Saipem’s pipelaying vessel – Castorone – will go to work in Brazil.

Back in September 2023, Equinor submitted the declarations of commerciality and plans of development for two natural gas fields – Raia Manta and Raia Pintada – in the BM-C-33 concession to Agência Nacional de Petróleo, Gás Natural e Biocombustíveis (ANP). The Norwegian giant, as the operator, holds a 35% stake in this block while Repsol Sinopec Brasil and Petrobras hold 35 and 30% interest, respectively.

Moreover, the selected development concept encompasses an FPSO capable of processing gas and oil/condensate to meet sales specifications without further onshore processing. The start-up of the project is anticipated in 2028. This is expected to be Brazil’s first project to treat the gas offshore and be connected to the national grid without further onshore processing.