Brazil - Sergipe Deepwater Project (SEAP)

[Administrator]

Petrobras has informed that it has started the contracting process for the chartering of two platform vessels for the Sergipe Deepwater Project (SEAP), in the Sergipe-Alagoas Basin, about 100 km off the coast.

The original BOT (Build-Operate-Transfer) scheme has been replaced with a more competitive EPCI, Lease, O&M model, which could attract more bids submission by numerous FPSO contractors worldwide.

The FPSO, each (SEAP I and SEAP II) will have the capacity to process up to 120 thousand barrels of oil per day (bpd). The oil in the region is light, considered to be of good quality, between 38 and 41 degrees API - and, therefore, of higher commercial value. Together, the two units will have the potential to offer up to 18 million cubic meters of gas per day.

The SEAP I project covers the fields of Agulhinha, Agulhinha Oeste, Cavala, and Palombeta, located in the BM-SEAL-10 and BM-SEAL-11 concessions. Petrobras is the operator of the BM-SEAL-11 concessions - with 60% stakes, in partnership with IBV BRASIL PETRÓLEO Ltda (40%) - and BM-SEAL-10, where it holds 100% stakes.

The SEAP II project on the other hand covers reservoirs belonging to the Budião, Budião Noroeste, and Budião Sudeste fields, located in the BM-SEAL-4, BM-SEAL-4A, and BM-SEAL-10 concessions, respectively. Petrobras is the operator of concessions BM-SEAL-4 - with 75% stakes in partnership with ONGC Campos Ltda. (25%) - and BM-SEAL-4A and BM-SEAL-10, where it holds 100% stakes.

[Administrator]

29 Dec 2025

Petrobras Greenlights Investment for SEAP II Project Development

Petrobras has officially approved the Final Investment Decision (FID) for the Sergipe Deep Waters Module 2 (SEAP II) project in the Sergipe-Alagoas Basin. This project is pivotal for increasing domestic gas production and unlocking a new frontier for energy development in Brazil's Northeast region.

The SEAP II project involves the exploration of light oil deposits, with high-quality oil ranging between 38 and 41 degrees API. These deposits are located in the Budião, Budião Northwest, and Budião Southeast fields, about 80 km offshore within the BM-SEAL-4, BM-SEAL-4A, and BM-SEAL-10 concessions. Petrobras operates the BM-SEAL-4 concession with a 75% stake, in partnership with ONGC Campos Limitada (25%). It also holds full ownership (100%) of the BM-SEAL-4A and BM-SEAL-10 concessions.

As part of the project's development, Petrobras will contract an FPSO (Floating Production, Storage, and Offloading unit) under the Build, Operate, and Transfer (BOT) model. This unit will have a production capacity of 120,000 barrels of oil per day (bpd) and 12 million m³ of gas per day. Negotiations for the FPSO are expected to conclude by mid-2026, with first oil production anticipated in 2030, in line with Petrobras' 2026-2030 Business Plan.

SEAP I and Expansion of Deep-Water Development

In addition to SEAP II, Petrobras is advancing the SEAP I project, which involves deposits from the Agulhinha, Agulhinha Oeste, Cavala, and Palombeta fields, located within the BM-SEAL-10 and BM-SEAL-11 concessions. Petrobras operates the BM-SEAL-11 concession with a 60% stake, partnered with IBV Brasil Petróleo LTDA (40%), and holds full control over BM-SEAL-10.

New Investment Opportunities

These projects represent a significant opportunity for both the energy sector and the states of Sergipe and Alagoas. With an estimated potential output of up to 18 million m³ of gas per day, the projects are expected to generate new avenues for investment. Furthermore, the SEAP projects will push technological boundaries, including the implementation of deep-water production in depths exceeding 2500 meters—reaching up to 3000 meters—leveraging cutting-edge innovations in the energy field.

[Administrator]

Petrobras Advances SEAP Development with FID on SEAP I

Petrobras has taken Final Investment Decision (FID) on the SEAP I module in the Sergipe-Alagoas Basin, marking a key step in the phased development of the Sergipe Deepwater Project (SEAP), an emerging offshore production hub in Brazil. This follows the earlier FID for SEAP II in December 2025, confirming full-field development progression.

Project Economics and Commercial Structuring

Project sanction was enabled by a combination of cost optimization measures, supply chain engagement, and revised commercial frameworks. Petrobras worked closely with contractors to restructure contractual terms and improve project economics, enhancing overall IRR and resilience under oil price volatility scenarios.

A notable outcome was the joint procurement strategy for the P-81 (SEAP I) and P-87 (SEAP II) FPSOs. Bundling these units allowed Petrobras to capture synergies, standardization benefits, and economies of scale—key factors in achieving commercially viable agreements.

As a result, SEAP I has been incorporated into Petrobras' Base Implementation Portfolio, reinforcing the role of collaborative supplier engagement in unlocking complex deepwater developments.

Execution Model and Contracting Strategy

Both FPSOs will be delivered under a BOT (Build, Operate, Transfer) model, with SBM Offshore responsible for EPCIC and operations during the initial contract period prior to asset transfer. This model provides capital efficiency, schedule acceleration, and operational continuity.

Contract signing is expected in May 2026, subject to final governance approvals and partner alignment, enabling transition into the execution phase.

Production Capacity and Timeline

Combined, the two FPSOs will deliver:

Oil production capacity: 240,000 bbl/d
Gas processing capacity: 22 million m³/d

First oil is targeted for 2030, with gas export infrastructure coming online in 2031.

Field Development Scope

The SEAP development plan includes:

Drilling and completion of 32 subsea wells
Installation of subsea production systems, including Christmas trees and associated infrastructure
A 134 km gas export pipeline (111 km offshore, 23 km onshore)

Tendering for subsea hardware is already in progress, with additional packages scheduled for bid in 2026.

Strategic Importance

SEAP represents a major addition to Brazil's upstream portfolio, with total capex exceeding BRL 60 billion and expected recovery above 1 billion boe. Beyond liquids production, the project is strategically positioned to expand domestic gas supply, supporting energy security and infrastructure development in the Northeast region.

Asset Breakdown

SEAP I (P-81 FPSO):
Targets light oil accumulations in Agulhinha, Agulhinha Oeste, and Palombeta (BM-SEAL-10/11).
Capacity: 120,000 bbl/d oil, 10 million m³/d gas
Petrobras operatorship: 100% (BM-SEAL-10), 60% (BM-SEAL-11)
SEAP II (P-87 FPSO):
Covers Budião, Budião NW, and Palombeta (~80 km offshore, BM-SEAL-4/4A/10).
Capacity: 120,000 bbl/d oil, 12 million m³/d gas
Petrobras operatorship: 75% (BM-SEAL-4), 100% (BM-SEAL-4A/10)