Japan’s MODEC and Sumitomo Heavy Industries Collaborate on FPSO Project for Shell in Brazil

Japan’s renowned giant MODEC has recently entered into a contract with compatriot heavy machinery manufacturer Sumitomo Heavy Industries to construct a crucial section of a floating production, storage, and offloading unit (FPSO) set to operate in the pre-salt area of the Santos Basin off the coast of Brazil. This project is being led by the UK-based energy heavyweight Shell.

According to a social media post by Soichi Ide, Group Head of Project Execution and Chief Digital Officer at MODEC, Sumitomo has been selected to build the forward block of MODEC’s innovative hull for the FPSO Gato do Mato, which will be deployed at Shell’s Gato do Mato field.

This collaboration signifies a significant milestone for the shipbuilding industry in Japan. The official signing ceremony, held at MODEC’s Kuala Lumpur office inaugurated on April 15, 2025, was a memorable event for all involved parties.

Following the successful bid for a front-end engineering and design (FEED) contract for Shell’s Gato do Mato project in April last year, MODEC secured a long-term operations and maintenance contract in March 2025.

The Gato do Mato Project in Santos Basin

The Gato do Mato project, situated in the Santos Basin, is a pre-salt gas-condensate discovery spanning two adjacent blocks: BM-S-54, a concession contract Shell acquired in 2005, and Sul de Gato do Mato, a production sharing agreement obtained in 2017.

MODEC has revealed that the FPSO designated for the project will boast a specially designed next-generation hull to ensure a 25-year design life. With the capacity to produce 120,000 barrels of oil per day (bopd) along with associated gas and water, the vessel will be anchored at a water depth of approximately 2,000 meters, about 200 kilometers south of Rio de Janeiro.

Shell leads the project with a 50% stake, alongside partners Ecopetrol (30%), TotalEnergies (20%), and Pré-Sal Petróleo SA (PPSA) managing the production sharing contract (PSC).

Future Outlook and Developments

The final investment decision (FID) for the Gato do Mato project, slated to commence operations in 2029, was announced just over a month ago. Shortly thereafter, TechnipFMC was awarded the integrated engineering, procurement, construction, and installation (iEPCI) contract valued at over $1 billion.