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Equinor awards several FEED contracts in Brazil

Jan 30, 2020
3 min read
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Equinor has, on behalf of the partners ExxonMobil and Petrogal Brasil entered into Front End Engineering and Design (FEED) contracts with early commitments and pre-investments for phase 1 of the Bacalhau (formerly Carcará) area in Brazil.

Contractors have been selected for both the SURF (Subsea, Umbilical, Risers and Flowlines) and the FPSO (Floating Production, Storage and Offloading) contracts. Subsea Integration Alliance, SIA formed by Subsea7 and OneSubsea has been selected for the SURF contract and MODEC Inc. for the FPSO contract.

“Awarding these contracts is an important milestone in developing the Bacalhau area,” said Anders Opedal, Equinor’s executive vice president for Technology, Projects & Drilling. “We have awarded these contracts to reputable companies with long experience in Brazil and we are now looking forward to further collaboration with SIA and MODEC to ensure a timely execution of the project.”

The SURF and FPSO contracts are based on a two-step award. The FEED and pre-investment are starting now, with an option for the execution phase under a lump sum turnkey contract setup which includes engineering, procurement, construction and installation for the entire SURF and FPSO scopes.

Subsea Integration Alliance will be responsible for life-of-field support, representing a fully integrated contract model across the entire field life cycle, from engineering and early engagement to aftermarket services.

“The award to Subsea Integration Alliance of the FEED contract for the Bacalhau project exemplifies our commitment to in-country value for Brazil, enabling regional efficiency and performance while increasing local content and alignment with Equinor’s strategic priorities,” said Don Sweet, president, OneSubsea.

Options for both contracts are subject to a planned investment decision late 2020.

The FPSO contractor will operate the FPSO for the first year. Thereafter, Equinor plans to operate the facilities until end of the license period in 2053.

“This will be the largest FPSO in Brazil with a production capacity of 220,000 barrels per day,” Opedal added.

“Brazil is a core growth area for Equinor, and the company has ambitions of producing 300 to 500 thousand barrels a day in Brazil within 2030. Bacalhau will be an important contributor to reach this goal,” noted Margareth Øvrum, Equinor’s executive vice president, Development and Production Brazil.

Partners in Bacalhau: Equinor 40 per cent (operator), ExxonMobil 40 per cent, Petrogal Brasil 20 per cent+ and Pré-sal Petróleo SA (PPSA, non-investor Government Agency).

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