Petrobras bringing $12-billion oil & gas project pair to life with SBM Offshore on FPSO duty for both

April 14, 2026, by Melisa Cavcic

Brazilian state-owned energy giant Petrobras has made a final investment decision (FID) for another development in the Sergipe Alagoas Basin off the coast of Brazil. Dutch giant SBM Offshore is in charge of two floating production, storage, and offloading (FPSO) vessels that will enable production from the two approved projects, which will set the stage for a new oil and gas production frontier in the country.

Nearly four months after disclosing the FID for the SEAP II module in December 2025, Petrobras revealed the final investment decision for the SEAP I project in the Sergipe-Alagoas Basin, consolidating the development of Sergipe Deepwater (SEAP).

With total investments exceeding R$ 60 billion (around $12.02 billion), the two projects are expected to produce more than 1 billion barrels of oil equivalent (boe), representing significant economic returns for the firm and making a relevant contribution to increasing national oil and gas production.

The company claims that the feasibility of the projects resulted from a series of initiatives conducted together with the supplier market, notably project optimizations and the revision of contractual terms and conditions, which increased the economic attractiveness of both modules.

This is said to have enabled the structuring of the joint negotiation for the FPSO P-81 and P-87 units, which will be part of the SEAP I and SEAP II projects, respectively, allowing for the capture of significant synergies and economies of scale, fundamental for concluding the negotiation on economically sustainable terms.

“The conditions achieved increased the financial return of the projects and enabled the inclusion of SEAP I in the Base Implementation Portfolio. This result reinforces the importance of partnership and active engagement between the company and the supplier market as central elements for project feasibility, even in a context structurally marked by oil price volatility,” highlighted Petrobras.

The Brazilian giant conducted a contracting process for the construction of two FPSO-type oil production units for the SEAP project, under the build, operate and transfer (BOT) contracting model, where the contractor is responsible for the design, construction, assembly, and operation of the asset for an initial period defined in the contract, with subsequent transfer to the oil and gas operator.

Petrobras rubber-stamps oil & gas project offshore Brazil: FPSO negotiations drawing to a close

Exploration & Production

As a result, the signing of the contracts is expected in May 2026, after the completion of Petrobras’ governance procedures and the necessary partner approvals. The company underlines that SBM Offshore will be responsible for the construction of both platforms, which together will have an installed capacity to produce up to 240,000 barrels of oil per day and process 22 million cubic meters of natural gas per day.

Aside from the two FPSOs, the project includes the construction and interconnection of 32 wells, as well as the implementation of an export gas pipeline approximately 134 kilometers long — 111 kilometers offshore and 23 kilometers onshore. The bidding process for the supply of subsea Christmas Trees (WCTs) and equipment for both projects is already underway.

The bidding for the remaining infrastructure is expected to begin later in 2026. While oil production from SEAP II is scheduled to start in 2030, with gas exports beginning in 2031, production from SEAP I is expected after the Business Plan 2026-30 horizon. The SEAP I project covers reservoirs with light oil, considered high quality, belonging to the Agulhinha, Agulhinha Oeste, and Palombeta fields, located in the BM-SEAL-10 and BM-SEAL-11 concessions.

Petrobras is the operator of BM-SEAL-11 with a 60% stake, in partnership with IBV Brasil Petróleo (40%), and BM-SEAL-10 with 100% participation. The FPSO for the project will have the capacity to produce 120,000 barrels of oil per day and process 10 million cubic meters of natural gas daily.

The SEAP II project encompasses reservoirs with light oil, considered high quality, belonging to the Budião, Budião Noroeste, and Palombeta fields, situated about 80 kilometers off the coast in the BM-SEAL-4, BM-SEAL-4A, and BM-SEAL-10 concessions, respectively.

Petrobras is the operator of BM-SEAL-4 with a 75% stake, in partnership with ONGC Campos (25%), and BM-SEAL-4A and BM-SEAL-10, where it holds 100% participation. The FPSO to be deployed will have a daily processing capacity of 120,000 barrels of oil and 12 million cubic meters of gas.

“SEAP is strategic for increasing the availability of natural gas in the country, strengthening national energy infrastructure, and opening a new production frontier in the Northeast region,” emphasized the Brazilian state-owned giant.