CIMC Secured Another Two FPSO Hull EPC Orders from an Ocean Engineering Giant

Recently, CIMC Raffles, a subsidiary of CIMC Group, is awarded by Seatrium, an ocean engineering giant based in Singapore, for EPC orders to supply two floating production storage and offloading (FPSO) hulls for Petrobras, Brazil's national oil company. With this latest agreement, CIMC Raffles has previously delivered two and is currently constructing a total of four FPSO Hulls for Petrobras, further solidifying CIMC's leading position in the global offshore engineering sector.

The delivery of P-71

FPSOs, also referred to as “offshore petroleum refinery”, are extensively used by Petrobras (Brazil's national oil company), the largest FPSO user globally. The orders are P-84 and P-85 FPSO platforms.

As a new generation of FPSOs of Petrobras, the P-84 and P-85 FPSOs will each have a production capacity of 225,000 barrels of oil per day and gas processing capacity of 10 million cubic meters per day. Both FPSOs will incorporate advanced technologies such as zero routine flaring and venting, variable speed drives and measures to control emissions and capture CO2, which are characterized by a high production capacity that prioritise sustainable practices with innovative technologies, to achieve a 30% reduction in greenhouse gas emissions intensity.

CIMC Raffles is responsible for the EPC (Engineering, Procurement, and Construction) of the hulls, living quarters, and M15B module for these two vessels. Upon completion, the vessels will be deployed in the Atapu and Sepia oil fields in the eastern Santos Basin of Brazil, located approximately 200 kilometers offshore from Rio de Janeiro.

In recent years, the global deepwater development has been steadily recovering, leading to a strong demand for FPSOs. CIMC Raffles has seized industry opportunities by making FPSOs a strategic focus. Through initiatives such as establishing a specialized oil & gas R&D center, expanding yard facilities and infrastructure, leveraging the resources of deep-water terminals, and innovating modular construction methods, CIMC Raffles aims to enhance FPSO production capacity and provide ample resource support to drive business development.

As of now, CIMC Raffles has delivered the hull of the P-71 FPSO, the hull block of the P-78 FPSO as well as various topside modules for multiple FPSO projects, and has undertaken the overall construction contracts for the P-80 and P-83 FPSO hulls.

With a lean project management system and stringent safety and quality standards, CIMC Raffles has been honored as Petrobras' best offshore supplier and is one of the first domestic enterprises to pass Petrobras' FPSO overall contracting qualification review. Additionally, CIMC Raffles has made significant breakthroughs in oil production platform projects.

Industry analysts are optimistic about the prospects of the shipbuilding and marine industry. Huatai Securities released a research report stating that large-scale offshore equipment manufacturing is an industry with high technical difficulty, high capital demand, and long cycles. It has requirements for multi-industry support, capital intensity, and labor intensity, and the value of existing production capacity in the upward cycle is becoming increasingly prominent. Under the trend of oil and gas development moving towards ultra-deep water, it is optimistic on the certainty and sustainability of offshore oil and gas investment driving the overall recovery of the marine industry.

According to a research report by Changjiang Securities, leading shipyards are expected to fully benefit from the new shipbuilding cycle. The team believes that the shipbuilding sector’s long-cycle prosperity is on the rise, gradually witnessing profit release; shipping is accelerating decarbonization, leading to sustained shipbuilding demand; and China’s shipbuilding industry is leading globally, moving towards high-value-added vessels, which will bring more development opportunities to the entire industry.