Shell hands out FEED work for Brazil-bound FPSO to MODEC

Shell do Brasil, a Brazilian subsidiary of the UK-headquartered energy giant Shell, has picked Japan’s MODEC to provide the front-end engineering and design (FEED) services for a floating production, storage, and offloading (FPSO) vessel destined to work on its oil and gas field development off the coast of Brazil.

The award of a FEED deal to MODEC for the FPSO Gato do Mato comes after Shell disclosed in November 2022 that the final investment decision (FID) for the Gato do Mato project would not be made within 12 to 24 months. In December 2023, Cristiano da Costa, President of Shell Brasil, revealed the company’s plans to take the FID in 1Q 2025.

Hirohiko Miyata, MODEC’s President and CEO, commented: “MODEC is proud to be working on its nineteenth (19th) FPSO for Brazil and our second for Shell in Brazil. This milestone indicates the strong relationship between the two companies which now spans more than 20 years. We are excited about performing this FEED study for Shell.”

Thanks to the deal with Shell, MODEC will be responsible for the design of the hull and all related topside facilities for the FPSO, which is projected to be moored by a SOFEC Spread Mooring system. The FPSO will be moored at a water depth of around 2,000 meters, some 250 km offshore Brazil. While the produced stabilized crude will be stored in the FPSO tanks, the oil will be offloaded to shuttle tankers to go to market.

Located in the Santos Basin, approximately 200 km offshore Brazil, in water depths of around 2,000 meters, the Gato do Mato project is a pre-salt gas-condensate discovery that covers two neighboring blocks: BM-S-54 and Sul de Gato do Mato.

Previously, MODEC delivered 16 FPSOs to the Brazilian offshore energy sector. The Japanese player also has two more FPSOs under construction. The FPSO Gato do Mato will be the second unit to be delivered directly to Shell by MODEC for operation in Brazil.