Petrobras Awards 48-Month Offshore Contract to Mota-Engil Unit

Petrobras PBR, Brazil's state-controlled integrated oil and gas company, has awarded a substantial €250 million contract to Empresa Construtora do Brasil, a subsidiary of Portuguese multinational Mota-Engil, in a strategic expansion of its offshore infrastructure program. This four-year agreement underlines Petrobras’ intensifying focus on technological modernization and operational sustainability in deepwater operations, especially across the prolific Santos Basin.

Strategic Investment in Offshore Development

The 48-month contract that was recently signed is anticipated to significantly improve Petrobras' offshore capabilities. Covering a wide spectrum of engineering, construction and maintenance services, the scope includes piping installation and assembly, metal structure fabrication and installation, boiler making services involving vessels, tanks, towers and heat exchangers, scaffolding assembly, industrial painting, as well as comprehensive electrical and instrumentation maintenance. Additionally, the contract will support automation system integration, enhancing platform intelligence and data responsiveness.

Each aspect of this comprehensive work package is essential for the structural integrity and operational excellence of Petrobras’ offshore oil platforms. With Brazil’s deepwater pre-salt fields demanding advanced infrastructure solutions, this agreement ensures Petrobras can maintain peak efficiency, minimize downtime and uphold the highest safety standards across its offshore assets.

Mota-Engil Deepens Footprint in Brazil

For Mota-Engil, one of Europe’s leading infrastructure and construction groups, this agreement marks a substantial advancement in its long-term strategy for Latin America. Brazil, as a central international market for the company, presents abundant opportunities in the industrial and energy sectors. The contract significantly increases the firm’s project backlog in Brazil, affirming its operational resilience and financial outlook in the region.

Mota-Engil has repeatedly demonstrated its capability to execute complex offshore projects in demanding environments. By aligning with Petrobras, it gains not only a high-profile contract but also strategic visibility in one of the fastest-growing energy economies. This move strengthens its position as a trusted partner in Brazil’s industrial expansion and energy development initiatives.

Offshore Operations Enter a New Phase

The announcement coincides with a period of escalating offshore production for Petrobras. The FPSO Alexandre de Gusmão, located in the Santos Basin's Mero field, one of the world's most abundant pre-salt oil reserves, is where the company recently began operations.

This new unit, chartered from SBM Offshore under a 22.5-year agreement, is the fifth active FPSO in the Mero field, alongside the Pioneiro de Libra, Guanabara, Sepetiba and Marechal Duque de Caxias. These floating production units are critical to Petrobras’ strategy of expanding deepwater output while adhering to the highest environmental and operational benchmarks.

Major Discovery in the Aram Block

In early May, Petrobras further reinforced its exploration success with a high-quality oil discovery in the Aram block, also located within the Santos Basin. The find at exploratory well 3-BRSA-1396D-SPS revealed oil with no contaminants, highlighting the exceptional promise of Brazil’s pre-salt reserves.

This discovery is projected to accelerate Petrobras’ reserve replacement rate and boost production volumes. With the Aram block positioned in a geologically favorable region, Petrobras is expected to advance development plans rapidly, with global partners potentially participating in the resource’s commercialization.

Model for Global Collaboration in Energy

The Petrobras-Mota-Engil contract shows the role of global partnerships in shaping the future of offshore energy. As Petrobras enhances its capabilities in engineering, automation and sustainability, international contractors like Mota-Engil provide the technical depth, project management acumen and logistical precision required for such ambitious undertakings.

This collaboration reflects a growing trend in the energy sector, where knowledge-sharing and cross-border innovation define the competitive edge. The role played by Mota-Engil, especially in the more complex parts of the contract, strengthens the company's standing as a major facilitator of Brazil's long-term energy infrastructure development.

Enhancing Safety and Operational Efficiency

A critical focus of the contract is platform safety and long-term operational resilience. Maintenance of electrical and instrumentation systems ensures uninterrupted production and reduces the risk of equipment failure. Industrial painting and boiler work will mitigate corrosion risks and extend the service life of critical components, while the integration of automation support positions Petrobras to adopt predictive analytics and digital performance monitoring.

These improvements are expected to drive greater reliability across offshore units, supporting Petrobras’ objective of reducing unscheduled downtime and improving overall asset performance. Moreover, automation integration aligns with the company's digital transformation roadmap, promoting smarter, more agile offshore operations.

Implications for Brazil’s Oil Sector

This contract reflects Petrobras’ leadership in advancing Brazil’s offshore oil industry through high-impact investments and technologically advanced partnerships. As the company continues to explore, develop and produce from vast deepwater reserves, it reinforces Brazil’s role as a central supplier in the global oil market.

By working with reputable international contractors like Mota-Engil, Petrobras ensures access to global best practices in engineering execution and project safety. This, in turn, strengthens Brazil’s upstream sector, enhances export capacity and contributes to broader economic growth through job creation and industrial development.

Conclusion: Strengthening Brazil’s Offshore Energy Future

The offshore construction and maintenance contract between Petrobras and Mota-Engil’s Brazilian affiliate is a landmark achievement in offshore oil infrastructure. It reinforces Petrobras’ ongoing commitment to operational excellence, sustainability and energy leadership, while cementing Mota-Engil’s role as a key player in Brazil’s industrial evolution. As Petrobras accelerates offshore production and exploration activities, partnerships such as this will define the pace and quality of future energy development. With robust technical execution, forward-looking investment and unwavering commitment to performance, this collaboration sets a new standard for offshore oil platform construction in the market of Latin America.

PBR's Zacks Rank & Key Picks

Currently, PBR has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like Subsea 7 SUBCY, which sports a Zacks Rank #1 (Strong Buy), Paramount Resources Ltd. PRMRF and  RPC, Inc. RES, each holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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