SBM Offshore wins tender for Sergipe Deepwater FPSOs

Oil price rally driven by conflict in Iran enables full project sanction with two platforms
Dutch firm SBM Offshore has won the tender for the construction and operation of the two floating production units (FPSOs) for the Sergipe Deepwater project (SEAP), as confirmed by Petrobras CEO Magda Chambriard during the “CNN Talks” event this Wednesday (April 1). The award of both units — SEAP I and SEAP II — was made possible by the recent upswing in international oil prices, which has improved the project’s economic attractiveness.

“With this increase in oil prices, we are now able to move forward with SEAP I,” Chambriard said, referring to the second platform, whose bankability had been contingent on a more favorable price environment. Brent crude has surged above $100 per barrel in recent weeks, driven by the conflict involving the United States, Israel, and Iran, which led to a partial closure of the Strait of Hormuz — a critical chokepoint through which roughly 20% of the world’s oil supply transits.

Production capacity and infrastructure

The combined capacity of the two platforms is expected to reach 200,000 barrels of oil per day and 18 million cubic meters of natural gas per day. Each FPSO will be capable of processing up to 120,000 barrels of oil and 12 million cubic meters of gas, with output transported to shore via a pipeline system spanning approximately 128 kilometers (100 km offshore and 28 km onshore).

The SEAP project encompasses seven fields declared commercial by Petrobras in December 2021 — Agulhinha, Agulhinha Oeste, Budião, Budião Noroeste, Budião Sudeste, Cavala, and Palombeta — located within the BM-SEAL-4, BM-SEAL-4A, BM-SEAL-10, and BM-SEAL-11 concessions, roughly 80 kilometers off the coast of Sergipe in the Sergipe-Alagoas Basin.

Brazil’s National Petroleum Agency (ANP) recently approved an extension of the concession contracts, pushing SEAP I’s term to 2055 and SEAP II’s to 2057. The move provides greater regulatory certainty and is expected to increase recoverable oil and gas volumes by 14.5%, according to the regulator.

Project trajectory and market context

Originally slated for startup in 2026, SEAP has undergone two schedule revisions — first to 2028 and later to 2030. The final investment decision (FID) for the first platform, SEAP II, was approved by Petrobras in December 2025 and included in the company’s firm investment portfolio under its 2026–2030 Strategic Plan. SEAP I, meanwhile, had been classified as a “target project,” dependent on favorable market conditions.
The tender followed a Build, Operate and Transfer (BOT) model, under which SBM Offshore will construct and operate the units before transferring ownership to Petrobras at the end of the contract term. The company submitted the most competitive technical and commercial bids for both platforms in a process concluded in March.

The recent rise in oil prices — with Brent trading above $100 per barrel since the onset of the Iran conflict in March — proved decisive in securing the economic viability of the second unit. When Petrobras released its strategic plan in November 2025, it outlined total investments of $109 billion, including $81 billion in firm projects and $28 billion in conditional projects. SEAP I was among those contingent on market conditions.
Analysts at Bank of America forecast Brent will remain around $100 per barrel throughout 2026, with an annual average of $92.50 — a pricing environment that supports the project’s economics.

SBM Offshore and its footprint in Brazil

SBM Offshore is a longstanding supplier to Petrobras, with nine FPSOs currently operating in Brazilian waters. The company is particularly active in the Santos Basin, supporting pre-salt developments such as Mero, Búzios, and Tupi. The FPSOs Almirante Tamandaré and Alexandre de Gusmão, each with a capacity exceeding 180,000 barrels per day, began operations in 2025 at the Mero field.

According to a company statement released in November 2025, the bids for SEAP I and II underscore SBM Offshore’s “leading position in the large and complex FPSO segment.” While competing globally with Asian shipyards, the company maintains approximately 50% of its operations in Brazil, as noted by CEO Øivind Tangen.

Regional impact and outlook

Startup of the SEAP project is scheduled for 2030, with SEAP II expected to come online first, followed by SEAP I roughly one year later. Studies by the Government of Sergipe estimate total investments of $5 billion (approximately BRL 25 billion) and a cumulative impact of up to BRL 37.8 billion on the state’s GDP over the project lifecycle.

The development is considered strategic for expanding Brazil’s domestic natural gas supply, with potential to serve thermoelectric power plants, fertilizer industries, and energy-intensive consumers in the Northeast. Petrobras signed a memorandum of understanding with the Sergipe state government in March to support commercialization of the gas, while the state is actively working to attract industrial consumers that can benefit from the new infrastructure.

The tender for the export gas pipeline is expected to be launched later in 2026, with startup aligned with first production in 2030. With the FPSO contracts now awarded, workstreams related to subsea infrastructure — including production and injection systems to tie back wells to the floating units — are set to move forward.
SEAP represents the first new deepwater oil and gas frontier outside the Santos Basin since the pre-salt discoveries, positioning Sergipe as an emerging player in Brazil’s energy sector after decades of production concentrated in mature onshore fields.