MODEC, Yinson Win FPSO Charters from Petrobras

October 16, 2019

© Celso Pupo / Adobe Stock
© Celso Pupo / Adobe Stock

Brazilian state-run oil company Petróleo Brasileiro S.A. (Petrobras) has signed letters of intent with Japan’s MODEC and Malaysia’s Yinson for charter contracts for two floating production, storage and offloading units (FPSO) for the Marlim field offshore Brazil.

MODEC confirmed in a statement it has received a LOI for the supply, charter, and operations of the Marlim-1 FPSO, capable of processing 80,000 barrels of crude oil per day, 7 million standard cubic meter of gas per day, 390,000 barrels of water injection per day and will have minimum storage capacity of 1 million barrels of crude oil. First oil production is planned for 2022.

Yinson said in a separate statement it has been awarded two LOIs by Petrobras for the charter, operations and maintenance of Marlim-2 FPSO, worth $5.4 billion combined. The FPSO is expected to come on stream in 2023.

The contract period for both FPSOs is for 25 years from the date of the final acceptance.

The new units will replace older platforms as part of Petrobras’ revitalization of its 100% operated Marlim field in the Campos basin, 150 kilometers off the coast of the Rio de Janeiro. The wells are locate in approximately 670 meters water depth. 

Marlim-1 marks MODEC's sixth vessel in the Campos basin and 16th project for the Brazilian market since the company started to operate in the region in 2003.

MODEC is responsible for the engineering, procurement, construction, mobilization, chartering and operations of the Marlim-1 FPSO, including topsides processing equipment as well as hull and marine systems. MODEC group company SOFEC will design and supply the spread mooring system.

In addition to Marlim-1, MODEC will provide three more FPSOs for the country within the next few years. Carioca MV30, Guanabara MV31 and Almirante Barroso MV32 will be deployed in the pre-salt of Santos basin.

Yuji Kozai, President and CEO of MODEC, said, “Brazil is a key country in our business strategy and is about to enter a very promising period for the energy segment. Brazilian market and Petrobras have been supporting us by strengthening our position in global offshore oil and gas industry for nearly 20 years. It is our wish to continue to support the development of the local oil and gas industry, either through mature fields like the Marlim revitalization project as well as green field projects in the pre-salt, among others.”

For Yinson, Marlim-2 will be its largest project to date and first vessel to operate in Brazil waters as the company awaits the results of several other bids in the region.

“This project further cements Yinson’s position as a global FPSO player,” said Yinson group CEO Lim Chern Yuan. He said the group had been focusing on building its resources, capacity and expertise to meet the project’s delivery and timeline.

In March 2019, Yinson and Sumitomo Corporation announced their intention to collaborate on the Marlim revitalization project, in which Sumitomo would participate with an effective interest of at least 20% in the event of a successful bid by Yinson.



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