Oil And Gas – Brazil Drives Global Demand And FPSO Contracts Surge Exponentially. Brazilian Projects Are Expected To Be The Largest In Terms Of Production Capacity

Written by Roberta Souza

Published on 12/01/2022 at 08:51

Updated on 12/01/2022 at 09:57

Foto: reprodução google imagens

Be the first to react!

Rystad: FPSO Contracts in 2021 Reach Pre-Pandemic Levels. Ten New Orders Expected in 2022 for Oil and Gas Production

According to Rystad Energy’s research, the market for floating production, storage, and offloading (FPSO) units almost ignored the pandemic’s effect in 2021, primarily driven by demand from Brazil, and is expected to continue at a rapid pace in 2022.

Two leasing contracts were awarded in the fourth quarter of 2021, bringing the total for the year to 10 – up from just three in 2020 – a strong recovery for the FPSO market for oil and gas production.

FPSO Market for Oil and Gas Production

“With around 30 FPSO units under construction or in the queue for construction, and another 10 expected to be awarded in the next 12 months, the market should leverage its recent success. However, as witnessed in many other facets of the global economy in recent months, supply chain concerns remain and will test the market’s ability to accept new contracts without excesses and uncontrollable cost overruns,” says Zhenying Wu, senior analyst at Rystad Energy.

The FPSO market had a strong finish in 2021, with two leasing and operation contracts, two front-end engineering and design (FEED) contracts, and one contract extension awarded in the fourth quarter.

In Brazil, Yinson received two letters of intent (LOI) from Petrobras to provide the Integrated FPSO Parque das Baleias (IPB), and for operation and maintenance services, under a leasing and operation contract lasting 22 years and six months from the day of final acceptance. The FPSO will be deployed at the Jubarte field in the Campos Basin and is scheduled to start production in late 2024.

Enauta Energia issued another LOI to Yinson to supply, operate, and maintain an FPSO in the Atlanta field in the Santos Basin in Brazil. The work involves the adaptation of the FPSO OSX-2 by Yinson through a turnkey engineering, procurement, construction, and installation (EPCI) contract, with guarantee and operation and maintenance for 24 months.

The acquisition and adaptation cost of the FPSO will be around US$ 505 million. Yinson has the purchase option for a unit tied to financing. If the purchase option is exercised, it will be linked to leasing, operation, and maintenance contracts for 15 years, extendable by five years, totaling US$ 2 billion over 20 years. The contract is Yinson’s third project in Brazil and is subject to a final investment decision during the first quarter of 2022.

Other Countries

Elsewhere in South America, ExxonMobil awarded SBM Offshore an FPSO FEED contract for the development of Yellowtail in deep waters in the Stabroek block off the coast of Guyana. The FPSO will be designed to have an oil processing capacity of 250,000 bpd, a gas processing capacity of 450 million cubic feet per day, and storage of up to 2 million barrels. When completed, the FPSO will be the largest producing unit the company has ever built.

ExxonMobil is currently producing from Stabroek through the FPSO Liza Destiny. The FPSO Liza Unity arrived in Guyanese waters on October 26, and ExxonMobil expects both units to produce this year. When the Prosperity and Yellowtail projects come online in 2024 and 2025, respectively, ExxonMobil will have a total processing capacity of over 800,000 bpd in Guyana.

In Nigeria, BW Offshore secured a lease extension for the FPSO Sendje Berge, operating for Addax Petroleum Exploration (Nigeria) Ltd, which will last until the fourth quarter of 2022.

In Norway, Aker Solutions received an LOI for a FEED contract from Equinor to provide an FPSO to be employed in the Wisting field in the Norwegian sector of the Barents Sea. The scope of the FEED is to provide front-end engineering design for a circular FPSO solution, which includes an option for EPCI of the FPSO topside. If the project advances to the execution phase, the EPCI option potentially represents a significant contract, estimated between US$ 960 million and US$ 1.45 billion, Rystad said.

Oil And Gas – Brazil Drives Global Demand And FPSO Contracts Surge Exponentially. Brazilian Projects Are Expected To Be The Largest In Terms Of Production Capacity

Rystad: FPSO Contracts in 2021 Reach Pre-Pandemic Levels. Ten New Orders Expected in 2022 for Oil and Gas Production

See Also Other News:

FPSO Market for Oil and Gas Production

Other Countries

A village with 115 inhabitants wants new residents: it offers a house, a job, up to 44 thousand euros in benefits, almost free rent, an annual grant of 8 thousand euros for 3 years, and a 20 thousand euro incentive for businesses in the mountains of Italy.

NASA is offering US$ 750,000 to people from anywhere in the world who solve a problem that could decide survival on Mars: creating food for astronauts without relying on resupply from Earth.

While countries spend billions to draw water from the sea, a Nobel-winning scientist creates a container-sized machine that extracts up to 1,000 liters per day from dry air and uses ultrasound to release water in minutes, even in the middle of the desert.

Belgium will sink 23 giant concrete caissons, each weighing 22,000 tons, in the North Sea to build the world’s first artificial energy island 45 km off the coast, forming offshore electrical walls.

New microwave that can replace three appliances hits the market: Sharp launches 3-in-1 model that combines air fryer, convection oven, and heating in 0.9 cubic feet for small kitchens

While Brazil has been discussing bullet trains for 16 years, China delivers 5 new high-speed lines in 2026, surpasses 50,000 km of HSR, and moves 1 billion passengers in a single year.

With an 88-meter wingspan, a capacity of 250 tons, six engines, and 32 wheels, the Ukrainian giant became the greatest symbol of extreme air transport and one of the most impressive machines in aviation history.

A public school student creates an “electric defensive” that uses only water, salt, and energy to protect crops without industrial pesticides, wins the Young Scientists Award 2025, and transforms an invisible chemical process into a solution for small farmers.

Brazil wants to become a military power, and missiles capable of hitting targets up to 200 km away begin to be produced in SIATT’s national factory, which already delivers the first batch to the Army and expands strategic surveillance of the Blue Amazon.

Xiaomi goes beyond cell phones and launches an electric kettle with 316Ti titanium steel, 1,800 W of power, and technology that keeps water hot for 24 hours, does not rust, prevents a metallic taste, and costs around R$ 101 in China.

The IMF shows Brazil’s reality in the coming years and projects the country back into the top 10 largest economies in the world by 2030, with a GDP of US$ 3.20 trillion and a jump of US$ 560 billion in five years.

Goodbye traditional microwave: Brastemp surprises and launches a 23-liter version with Multi-Prep function for brownie, risotto, and brigadeiro, smart weight-based defrosting, QR Code with recipes, and an initial price of R$ 639 in Brazil.

Oil And Gas – Brazil Drives Global Demand And FPSO Contracts Surge Exponentially. Brazilian Projects Are Expected To Be The Largest In Terms Of Production Capacity

Rystad: FPSO Contracts in 2021 Reach Pre-Pandemic Levels. Ten New Orders Expected in 2022 for Oil and Gas Production

See Also Other News:

FPSO Market for Oil and Gas Production

Other Countries

A village with 115 inhabitants wants new residents: it offers a house, a job, up to 44 thousand euros in benefits, almost free rent, an annual grant of 8 thousand euros for 3 years, and a 20 thousand euro incentive for businesses in the mountains of Italy.

NASA is offering US$ 750,000 to people from anywhere in the world who solve a problem that could decide survival on Mars: creating food for astronauts without relying on resupply from Earth.

While countries spend billions to draw water from the sea, a Nobel-winning scientist creates a container-sized machine that extracts up to 1,000 liters per day from dry air and uses ultrasound to release water in minutes, even in the middle of the desert.

Belgium will sink 23 giant concrete caissons, each weighing 22,000 tons, in the North Sea to build the world’s first artificial energy island 45 km off the coast, forming offshore electrical walls.

New microwave that can replace three appliances hits the market: Sharp launches 3-in-1 model that combines air fryer, convection oven, and heating in 0.9 cubic feet for small kitchens

While Brazil has been discussing bullet trains for 16 years, China delivers 5 new high-speed lines in 2026, surpasses 50,000 km of HSR, and moves 1 billion passengers in a single year.

With an 88-meter wingspan, a capacity of 250 tons, six engines, and 32 wheels, the Ukrainian giant became the greatest symbol of extreme air transport and one of the most impressive machines in aviation history.

A 45 km² oil slick appears in satellite images near Kharg Island, an area that accounts for 90% of Iran’s oil exports.

While Petrobras operates at 7,000 meters in the pre-salt layer, China is extracting oil and gas at 10,910 meters onshore — Shenditake 1 is the world’s first onshore well to exceed 10 km.

Brazil discovers natural hydrogen in four states and enters the silent race that could redraw the energy transition: Petrobras has already invested R$ 20 million in studies.

Trump promises transparency in Venezuela’s oil, but secret deals and corruption allegations continue to surround the billion-dollar sector.

Oil near US$100 raises tension on Wall Street and amplifies global fear about inflation, energy, and the Middle East crisis

A public school student creates an “electric defensive” that uses only water, salt, and energy to protect crops without industrial pesticides, wins the Young Scientists Award 2025, and transforms an invisible chemical process into a solution for small farmers.

Brazil wants to become a military power, and missiles capable of hitting targets up to 200 km away begin to be produced in SIATT’s national factory, which already delivers the first batch to the Army and expands strategic surveillance of the Blue Amazon.

Xiaomi goes beyond cell phones and launches an electric kettle with 316Ti titanium steel, 1,800 W of power, and technology that keeps water hot for 24 hours, does not rust, prevents a metallic taste, and costs around R$ 101 in China.

The IMF shows Brazil’s reality in the coming years and projects the country back into the top 10 largest economies in the world by 2030, with a GDP of US$ 3.20 trillion and a jump of US$ 560 billion in five years.

Goodbye traditional microwave: Brastemp surprises and launches a 23-liter version with Multi-Prep function for brownie, risotto, and brigadeiro, smart weight-based defrosting, QR Code with recipes, and an initial price of R$ 639 in Brazil.