Brazil’s Petrobras Extends FPSO Charter in Santos Basin

Brazil’s state-owned oil and gas giant Petrobras has prolonged the assignment of a floating production, storage, and offloading (FPSO) vessel in the Santos Basin off the coast of Brazil.

Japan’s MODEC converted the VLCC M/V Sunrise IV into an FPSO, named Cidade de Angra dos Reis, capable of processing up to 100,000 barrels of oil per day and 5 million m3 of gas, designed for H2S and CO2 removal and capable of reinjecting CO2 downhole at 550 bar besides exporting sales gas to shore.

Thanks to a 15-year lease with five one-year options, the FPSO Cidade de Angra dos Reis, designed to remain on the field for up to 20 years, has worked at the Lula (former Tupi) field since October 2010. The Tupi consortium comprises Petrobras (67.216%, operator), Shell (23.024%), Petrogal (9.209%), and PPSA (0.551%).

On behalf of the Tupi field consortium, Petrobras has now signed amendments to the charter and service agreements for the FPSO, moored in 2,149 meters of water, with Tupi Pilot MV 22 and MODEC Serviços de Petróleo do Brasil extending the charter period of the unit by an additional five years until 2030.

“The execution of these amendments aligns with the company’s 2025-2029 Business Plan and reinforces Petrobras and its partners’ commitment to the continuity and expansion of their operations in the Tupi field,” highlighted the Brazilian firm.

Aside from extending the contractual term, the amendments aim to enable upgrades to the FPSO, which currently has a production potential exceeding 50,000 barrels per day (bpd). The Brazilian giant underlines that this was the first high-capacity FPSO to operate in the pre-salt layer of the Santos Basin, cementing its importance in the history of offshore exploration in Brazil.

According to Petrobras, the planned FPSO improvements will be undertaken to enhance production reliability and efficiency, maintain platform integrity and operational safety, and reduce greenhouse gas (GHG) emissions. However, the consortium plans to decommission the FPSO Cidade de Angra dos Reis in 2030.

During the next five years, Brazil’s state-owned player has earmarked the biggest slice of its $111 billion investment pie for oil and natural gas, while the total spending in the energy transition arena is expected to reach $16.3 billion.