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Petrobras Selects SBM Offshore for Strategic Deepwater Development
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Key Takeaways
Petrobras awarded SBM Offshore contracts for two FPSOs to advance Sergipe-Alagoas basin output.
SEAP-I and SEAP-II FPSOs can each produce 120,000 barrels daily, with major gas capacity.
Integrated gas exports will boost Brazil's energy supply while supporting regional growth.
Petróleo Brasileiro S.A. - Petrobras (PBR - Free Report) has taken another important step in advancing the Sergipe-Alagoas deepwater development by awarding contracts for two new floating production, storage and offloading units (FPSOs) to SBM Offshore. The projects, known as SEAP-I (P-81) and SEAP-II (P-87), will support the company's efforts to unlock the significant hydrocarbon potential of the Sergipe-Alagoas Basin, located offshore northeastern Brazil.
Under the agreements, SBM Offshore will design, build and operate the FPSOs, while Petrobras-led consortia will retain ownership of the facilities. The contracts also include operations and maintenance services for an initial period of 6.5 years.
PBR Expands Production Capacity in a Key Offshore Basin
The two FPSOs will play a central role in developing one of Petrobras’ most promising offshore regions.
The SEAP-II FPSO (P-87), expected to be delivered in 2030, will have the capacity to produce 120,000 barrels of oil per day. It will also be capable of treating 425 million standard cubic feet of gas per day and injecting 120,000 barrels of water daily. The unit will operate approximately 80 kilometers offshore in water depths of around 2,500 meters.
The SEAP-I FPSO (P-81), scheduled for delivery in 2031, will likewise produce up to 120,000 barrels of oil per day. It will feature a gas treatment capacity of 355 million standard cubic feet per day and a water injection capacity of 200,000 barrels per day. The vessel will be deployed roughly 100 kilometers offshore in similar water depths.
Together, these facilities will significantly enhance Petrobras’ production capabilities in the basin while supporting long-term resource development.
Leveraging Proven FPSO Technology
Both units will be based on SBM Offshore’s Fast4Ward program, utilizing the company’s 11th and 12th new-build multipurpose floater hulls. The standardized design approach is expected to improve project execution efficiency, reduce development risks and support timely delivery.
By deploying proven FPSO solutions, Petrobras aims to accelerate the development of offshore resources while maintaining operational reliability and performance.
Supporting Brazil’s Natural Gas Market
A defining feature of the Sergipe-Alagoas development is its integrated gas export strategy. Both FPSOs will be connected to an export pipeline system that will transport associated gas directly to shore.
This infrastructure enables Petrobras to commercialize natural gas production alongside oil output, increasing the overall value of the project. The approach also reduces the need for offshore gas flaring and reinjection, supporting more efficient resource utilization.
By bringing additional gas supplies to the domestic market, Petrobras will contribute to improving energy availability in Brazil while strengthening the country's natural gas infrastructure.
PBR Helps Drive Regional Economic Growth
Beyond increasing energy production, the Sergipe-Alagoas project is expected to generate long-term economic benefits for northeastern Brazil. The development will support job creation, stimulate local supply chains and encourage investment in regional infrastructure.
As Petrobras advances these large-scale offshore projects, the company continues to reinforce its commitment to responsible resource development, energy security and sustainable economic growth.
Looking Ahead
The addition of FPSOs P-81 and P-87 marks a significant milestone in Petrobras’ strategy to expand production from high-potential offshore assets. With substantial oil and gas processing capabilities, advanced offshore infrastructure and a strong focus on domestic energy supply, the Sergipe-Alagoas development is positioned to become an important contributor to Brazil’s energy future.
As the project progresses toward first production later this decade, Petrobras continues to strengthen its offshore portfolio while creating value for shareholders, customers and the broader Brazilian economy.
PBR’s Zacks Rank & Key Picks
Petrobras is the largest integrated energy firm in Brazil, and its activities include exploration and production of oil, as well as refining, processing, trading and transportation. Currently, PBR carries a Zacks Rank #3 (Hold).
Calgary, Canada-based Cenovus Energy is a leading integrated energy firm. Starting from pumping out oil from its oil sands projects in Canada, the company’s operations comprise marketing the produced oil, natural gas and natural gas liquids. The Zacks Consensus Estimate for CVE’s 2026 earnings indicates 104.6% year-over-year growth.
Chord Energy's operations span across the Bakken and Three Forks formations, where the company boasts an impressive base of high-quality, oil-weighted resources. The Zacks Consensus Estimate for CHRD’s 2026 earnings indicates 115.4% year-over-year growth.
Diversified Energy Company is an energy company focused on natural gas and liquids production, transport, marketing and well retirement. The Zacks Consensus Estimate for DEC’s 2026 earnings indicates a 4% year-over-year decline.
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Petrobras Selects SBM Offshore for Strategic Deepwater Development
Key Takeaways
Petróleo Brasileiro S.A. - Petrobras (PBR - Free Report) has taken another important step in advancing the Sergipe-Alagoas deepwater development by awarding contracts for two new floating production, storage and offloading units (FPSOs) to SBM Offshore. The projects, known as SEAP-I (P-81) and SEAP-II (P-87), will support the company's efforts to unlock the significant hydrocarbon potential of the Sergipe-Alagoas Basin, located offshore northeastern Brazil.
Under the agreements, SBM Offshore will design, build and operate the FPSOs, while Petrobras-led consortia will retain ownership of the facilities. The contracts also include operations and maintenance services for an initial period of 6.5 years.
PBR Expands Production Capacity in a Key Offshore Basin
The two FPSOs will play a central role in developing one of Petrobras’ most promising offshore regions.
The SEAP-II FPSO (P-87), expected to be delivered in 2030, will have the capacity to produce 120,000 barrels of oil per day. It will also be capable of treating 425 million standard cubic feet of gas per day and injecting 120,000 barrels of water daily. The unit will operate approximately 80 kilometers offshore in water depths of around 2,500 meters.
The SEAP-I FPSO (P-81), scheduled for delivery in 2031, will likewise produce up to 120,000 barrels of oil per day. It will feature a gas treatment capacity of 355 million standard cubic feet per day and a water injection capacity of 200,000 barrels per day. The vessel will be deployed roughly 100 kilometers offshore in similar water depths.
Together, these facilities will significantly enhance Petrobras’ production capabilities in the basin while supporting long-term resource development.
Leveraging Proven FPSO Technology
Both units will be based on SBM Offshore’s Fast4Ward program, utilizing the company’s 11th and 12th new-build multipurpose floater hulls. The standardized design approach is expected to improve project execution efficiency, reduce development risks and support timely delivery.
By deploying proven FPSO solutions, Petrobras aims to accelerate the development of offshore resources while maintaining operational reliability and performance.
Supporting Brazil’s Natural Gas Market
A defining feature of the Sergipe-Alagoas development is its integrated gas export strategy. Both FPSOs will be connected to an export pipeline system that will transport associated gas directly to shore.
This infrastructure enables Petrobras to commercialize natural gas production alongside oil output, increasing the overall value of the project. The approach also reduces the need for offshore gas flaring and reinjection, supporting more efficient resource utilization.
By bringing additional gas supplies to the domestic market, Petrobras will contribute to improving energy availability in Brazil while strengthening the country's natural gas infrastructure.
PBR Helps Drive Regional Economic Growth
Beyond increasing energy production, the Sergipe-Alagoas project is expected to generate long-term economic benefits for northeastern Brazil. The development will support job creation, stimulate local supply chains and encourage investment in regional infrastructure.
As Petrobras advances these large-scale offshore projects, the company continues to reinforce its commitment to responsible resource development, energy security and sustainable economic growth.
Looking Ahead
The addition of FPSOs P-81 and P-87 marks a significant milestone in Petrobras’ strategy to expand production from high-potential offshore assets. With substantial oil and gas processing capabilities, advanced offshore infrastructure and a strong focus on domestic energy supply, the Sergipe-Alagoas development is positioned to become an important contributor to Brazil’s energy future.
As the project progresses toward first production later this decade, Petrobras continues to strengthen its offshore portfolio while creating value for shareholders, customers and the broader Brazilian economy.
PBR’s Zacks Rank & Key Picks
Petrobras is the largest integrated energy firm in Brazil, and its activities include exploration and production of oil, as well as refining, processing, trading and transportation. Currently, PBR carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may consider some top-ranked stocks like Cenovus Energy Inc. (CVE - Free Report) , Chord Energy Corporation (CHRD - Free Report) and Diversified Energy Company (DEC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Calgary, Canada-based Cenovus Energy is a leading integrated energy firm. Starting from pumping out oil from its oil sands projects in Canada, the company’s operations comprise marketing the produced oil, natural gas and natural gas liquids. The Zacks Consensus Estimate for CVE’s 2026 earnings indicates 104.6% year-over-year growth.
Chord Energy's operations span across the Bakken and Three Forks formations, where the company boasts an impressive base of high-quality, oil-weighted resources. The Zacks Consensus Estimate for CHRD’s 2026 earnings indicates 115.4% year-over-year growth.
Diversified Energy Company is an energy company focused on natural gas and liquids production, transport, marketing and well retirement. The Zacks Consensus Estimate for DEC’s 2026 earnings indicates a 4% year-over-year decline.