Singaporean offshore and marine engineering company Seatrium has finalized its selection of ABB, a Switzerland-based leader in power and automation technology, as the supplier of power equipment and automation solutions for two next-generation Floating Production, Storage, and Offloading (FPSO) units for Brazilian state-owned energy company Petrobras. This contract highlights the importance of key technologies in achieving the offshore energy industry's decarbonization goals and signals increasingly fierce competition in the global FPSO market.
Petrobras' Ambitious FPSO Project: P-84 and P-85
The FPSO P-84 and P-85, which Petrobras plans to deploy in the Atapu and Sépia oil fields approximately 200 km off the coast of Rio de Janeiro, Brazil, will each have a massive production capacity to process 225,000 barrels of crude oil and 10 million cubic meters of gas per day. Seatrium secured the $8.15 billion contract in 2024 to build these two "all-electric" FPSOs, which are expected to reduce greenhouse gas (GHG) emissions per barrel of oil produced by 30% when they come online in 2029. To achieve this, they will utilize electric-driven compressors and motors with a power generation capacity of 165 MW.
Through this order, ABB will be responsible for the design and construction of the topside and hullside power equipment, substation automation, and eHouses for FPSO P-84 and P-85. Notably, Petrobras intends to leverage ABB Ability System 800xA and IEC 61850 technology for substation automation. This technology is known to enable seamless interoperability between intelligent electrical devices, thereby enhancing operational efficiency and system reliability. ABB Ability System 800xA is a core platform that integrates various control systems and provides a unified operating environment for controlling and monitoring process and power systems, enabling efficient operation of complex offshore plants. IEC 61850 is an international standard for communication networks and systems within substations, offering high reliability and flexibility.
ABB's Innovative Technology Application and Production Capability
ABB, based in Switzerland, announced that this project marks the first offshore application of its "three Is-limiter configuration." Given the high power capacity of FPSOs, this technology is essential for effectively managing short-circuit currents. An Is-limiter is a high-speed operating device that limits short-circuit currents before they reach their maximum, preventing damage to electrical components and reducing mechanical and thermal stress. This plays a crucial role in ensuring the stability of power systems in demanding environments like offshore plants, where strict safety and reliability are paramount.
The FPSO topside systems, which will be constructed at ABB Singapore, are slated for installation inside ABB eHouses. An eHouse is a pre-fabricated, transportable substation designed to house medium- and low-voltage switchgear, essential power equipment, and automation cabinets. This contributes to reducing on-site construction time and enhancing project efficiency through a modular approach. ABB's contract for these two FPSOs follows KBR's selection to develop the topside facilities for the same pair of FPSOs. This exemplifies how collaboration among multiple specialized companies is essential for complex, large-scale projects.
Furthermore, ABB's Sorocaba factory in Brazil (85 km west of São Paulo) will manufacture UniGear ZS1 switchboards, which are used for power distribution in challenging environments. Construction of FPSO P-84 and P-85 began in 2024, and ABB's eHouses are scheduled for delivery by 2027. This demonstrates ABB's capability to efficiently execute large-scale projects by leveraging its global supply chain and production bases.
The Importance of FPSOs in the Global Energy Market
According to ABB, each FPSO unit will be capable of producing 225,000 barrels of crude oil per day, which is significant given the International Energy Agency's (IEA) prediction that global total supply capacity will approach 114 million barrels per day by 2030.
ABB emphasized that the Brazilian FPSO market continues to be a source of sustained growth in the offshore energy sector, with potential investments estimated to reach $21 billion in 2026-2027. This suggests that Brazil is a crucial driver of the global FPSO market, which is expected to reach $46.2 billion by 2033. Indeed, Brazil possesses abundant deepwater oil fields, and Petrobras is actively adopting FPSOs to develop these resources. This is part of a strategy to meet global energy demand while also adhering to environmental regulations.
Per Erik Holsten, President of ABB's Energy Industries business unit, stated, "The offshore energy industry requires innovative solutions and technologies at scale and speed to support an effective and safe energy market." He added, "We look forward to working with Seatrium on this large and complex project, bringing our ability to meet advanced technology requirements and high safety standards, and our deep commitment to energy efficiency."
Key Implications of the Seatrium and ABB Collaboration
The collaboration between Seatrium and ABB carries several important implications:
Increasing importance of decarbonization and eco-friendly energy technologies: The adoption of "all-electric" FPSOs demonstrates the offshore energy industry's active participation in the global trend of strengthening environmental regulations and responding to climate change. Electric propulsion systems offer higher efficiency compared to conventional internal combustion engines and significantly reduce exhaust emissions, contributing to marine environmental protection. This suggests that the application of eco-friendly technologies will further accelerate in all new FPSO projects.
Growth potential of the FPSO market: The FPSO market is expected to grow steadily, driven by increased deepwater oil field development, demand for replacement due to aging existing platforms, and the need for enhanced production efficiency. Particularly, major oil-producing countries like Brazil, West Africa, and Southeast Asia are actively investing in offshore oil field development, ensuring consistently high demand for FPSOs. The global shipbuilding and offshore industry is engaged in a fierce competition for technological development and investment to secure a leading position in this market.
Importance of global cooperation: For complex, large-scale projects like this one, successful execution requires close global collaboration among companies from various countries, such as Singapore, Switzerland, and Brazil. Each company contributes to the project's success by focusing on its core competencies, forming a virtuous cycle that leads to mutual technology exchange and market expansion.
Growing role of automation and digital technologies: Advanced automation and digital technologies like ABB's ABB Ability System 800xA play a decisive role in maximizing FPSO operational efficiency and enhancing safety. Real-time data analysis, remote monitoring, and predictive maintenance functionalities contribute to optimizing production, reducing operating costs, and preventing potential accidents. The digital transformation of offshore plants will further accelerate in the future, providing new business opportunities for related technology companies.
Impact on the Korean shipbuilding and offshore industry: Korea possesses world-leading capabilities in FPSO construction and design. This order for ABB once again emphasizes the importance of expertise in power and automation, suggesting that Korean companies must also strengthen their capabilities in these high-value-added technology areas and seek global partnerships. In particular, the adoption of eco-friendly and digital technologies will be essential for the Korean shipbuilding and offshore industry to secure future competitiveness.
Petrobras' P-84 and P-85 FPSO project will be a significant milestone that not only advances offshore oil field development but also sets the future direction for the energy industry. The collaboration between Seatrium and ABB will play a pivotal role in this journey toward the future, setting new standards for the global offshore energy industry. Moving forward, the competition for technological innovation and the adoption of eco-friendly solutions in the FPSO market will only intensify.
[Copyright (c) Global Economic Times. All Rights Reserved.]
