Seatrium's Production Facilities in Brazil and Their Importance for Petrobras Contracts

The Role of Seatrium's Brazilian Shipyards

Seatrium's three production sites in Brazil have given the company a significant edge in securing contracts with Petrobras for the construction of floating production, storage, and offloading vessels (FPSOs) in recent years. These facilities have strengthened Seatrium's position amid changes in procurement contract models.

Participation in Tenders and Changes in Contract Schemes

From 2021 to 2024, Seatrium secured about 90% of the engineering, procurement, and construction (EPC) FPSO contracts announced by the Brazilian state company. Over the past two years, Petrobras has stopped holding EPC-model tenders, shifting its preference to the build-operate-transfer (BOT) scheme.

Since Seatrium does not provide operation and maintenance (O&M) services, the company may need to participate in BOT tenders in partnership with other contractors, such as SBM Offshore, or act as an EPC subcontractor for projects implemented under the BOT model.

Competitive Advantages and Strategy

Having three major shipyards in Brazil allows Seatrium to efficiently meet local content requirements, giving the company an advantage in future full-cycle EPCC (engineering, procurement, construction, and commissioning) project tenders, similar to the six P-series FPSOs currently in its order book.

In 2024, SBM secured BOT contracts for the FPSO P-81 and P-87 for Petrobras, reducing Seatrium's potential portfolio in South America from 12 to 8 billion Singapore dollars (from 9.36 to 7.02 billion USD).

Seatrium continues to collaborate with SBM on local content issues and is focusing its efforts on participating in BOT tenders with Petrobras, as well as on integration and module fabrication for projects in Guyana, including the current FPSO Jaguar project for Exxon Mobil.

Features of Participation in BOT Tenders

The company is considering various participation options: EPC, integration, or module fabrication. The main objective is to fulfill contractual obligations. Seatrium notes that Petrobras's transition to the BOT model does not pose difficulties, as the company has experience working with different contract forms, including hybrid schemes. In BOT projects, Seatrium typically handles the EPC portion, leveraging its accumulated knowledge and expertise.

Current Projects and Prospects

Seatrium's portfolio includes the FPSO P-80 and P-82 projects for Petrobras, as well as a floating production unit for Shell's Sparta project in the US Gulf of Mexico. All are scheduled for delivery in the second half of 2026 from the Tuas Boulevard shipyard in Singapore.

Seatrium is also engaged in projects for the fabrication of platforms for oil and gas facilities, offshore wind farm structures, tanker conversions into floating storage and regasification units, as well as ship repair and modernization.

Main Development Directions

FPSO remains Seatrium's most promising segment in the short term. The company is among the few shipyards capable of executing large and complex full-cycle EPCC projects with contract values ranging from 4 to 5 billion Singapore dollars.

One of the key contracts Seatrium is currently competing for is the FPSO Albacora (P-88) for Petrobras. The application deadline has been extended to August 10, with the winner expected to be announced by the end of the year.

Approach to Contract Selection

Seatrium focuses not on the quantitative growth of its order book, but on securing optimal contracts, delivering high-quality execution, and achieving sustainable financial results.