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

December 31, 2025, by Melisa Cavcic

Brazilian state-owned energy giant Petrobras has made a final investment decision (FID) for a development in the Sergipe Alagoas Basin off the coast of Brazil. This project in the Northeast region is anticipated to expand the supply of gas.

Petrobras has disclosed the FID for the development of the Sergipe Deep Water module 2 (SEAP II) project in the Sergipe-Alagoas Basin, which is perceived to be a strategic project to expand the availability of gas and open a new production frontier in the Northeast region.

Covering the deposits with light oil, considered of good quality, between 38 and 41 degrees API, the SEAP II project encompasses the Budião, Budião Noroeste and Budião Sudeste fields located about 80 kilometers off the coast in the BM-SEAL-4, BM-SEAL-4A and BM-SEAL-10 concessions.

A floating, production, storage and offloading (FPSO) is being contracted for the development of the project as part of the build operate and transfer (BOT) model, with a capacity of 120,000 barrels of oil per day (bpd) and 12 million cubic meters per day, with the negotiation expected to be completed in the first half of 2026.

This is expected to enable the first oil of the project in 2030, as provided for in the Brazilian giant’s 2026-2030 Business Plan. Petrobras is the operator of BM-SEAL-4 with a 75% stake in partnership with ONGC Campos Limitada (25%) and BM-SEAL-4A and BM-SEAL-10, where it holds a 100% stake.

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Project & Tenders

Aside from the SEAP II project, Petrobras’ portfolio entails the SEAP I project, which covers the deposits belonging to the Agulhinha, Agulhinha Oeste, Cavala, and Palombeta fields, situated in the BM-SEAL-10 and BM-SEAL-11 concessions.

With a substantial volume of gas, considering the potential to offer up to 18 million cubic meters of gas per day, the projects are said to open a new horizon of investments, unlocking a series of opportunities to the sector and to the states of Sergipe and Alagoas.

These projects are forecast to enable a new technological milestone in the country, which is the implementation of a production project in water depth above 2,500 meters, reaching up to 3,000 meters, incorporating state-of-the-art innovations.

Petrobras is the operator of the BM-SEAL-11 concessions with a 60% stake, in partnership with IBV Brasil Petróleo (40%), and BM-SEAL-10, where it holds a 100% stake.

The FID comes shortly after the Brazilian heavyweight, in a consortium with Shell, obtained additional equity in two pre-salt oil projects in Brazil.