Petrobras Expands Energy Output With High-Tech FPSO Solutions

By Zacks Equity Research | June 12, 2025, 8:09 AM

Petrobras PBR, Brazil’s state-run integrated oil and gas company, has taken a significant leap toward next-generation offshore energy production through a strategic partnership with ABB and Seatrium. This collaboration centers on two new floating production storage and offloading (“FPSO”) vessels, P-84 and P-85, which are set to revolutionize Brazil’s offshore oil operations in the Atapu and Sépia oil fields, about 200 kilometers off the coast of Rio de Janeiro. As global oil demand keeps rising, these high-capacity FPSOs are set to play a key role in the future of offshore energy production.

Pioneering All-Electric Concept for Petrobras FPSOs

For the first time in the operational history, Petrobras is adopting an all-electric configuration for its offshore platforms. This transformative method lies at the heart of the design of these FPSOs. These vessels are expected to deliver a production capacity of 225,000 barrels of oil per day (bop/d) each, contributing significantly to global oil supply targets. The all-electric system includes electrically driven compressors and motors, representing a forward-looking strategy focused on energy efficiency, operational flexibility and reduced carbon emissions.

The vessels will boast a combined power generation capacity of 165MW, a level of output that necessitates advanced power management and control systems. The all-electric infrastructure enhances not only energy efficiency but also simplifies maintenance and improves system responsiveness, setting a new industry standard for FPSO development.

ABB’s Role in Delivering Advanced Electrical and Automation Systems

Under the newly awarded contract, ABB will design and supply the electrical and automation solutions for both the topside and hull side of the P-84 and P-85 FPSOs. The company’s cutting-edge technologies, including its ABB Ability System 800xA and IEC 61850-compliant substation automation, are pivotal to ensuring seamless integration and interoperability across all intelligent electrical devices. This level of automation significantly enhances system reliability, minimizes downtime and streamlines the management of complex offshore energy infrastructures.

Moreover, ABB’s role extends to the design and construction of electrical eHouses—modular, prefabricated electrical substations that house the essential medium and low-voltage switchgear and control cabinets. These units will be fully engineered and tested in its global manufacturing hubs, including the ABB Singapore and Sorocaba facilities, ensuring rigorous quality and safety standards.

Introduction of ABB’s Is-Limiter Technology in Offshore Applications

The P-84 and P-85 projects feature ABB’s Is-limiter configuration in its first offshore deployment, one of the projects' key innovations. This technology is designed to manage short-circuit currents in high-power electrical networks. The Is-limiters act within milliseconds to isolate faults, preventing mechanical and thermal stress on critical components. This fast-acting protection is essential in safeguarding equipment and maintaining operational continuity on high-capacity vessels where the electrical infrastructure faces extreme demand.

The inclusion of three Is-limiters per FPSO demonstrates Petrobras’ commitment to incorporating robust safety and protection mechanisms, which are crucial for offshore installations operating in remote and high-risk environments.

Strategic Manufacturing and Local Content Enhancement

The critical components of the power distribution system, particularly the UniGear ZS1 switchboards, will be manufactured locally at ABB’s Sorocaba factory in Brazil. This strategy not only ensures alignment with Petrobras’ local content requirements but also supports Brazil’s industrial ecosystem and promotes skilled job creation. ABB’s approach to local manufacturing underscores the importance of building resilient supply chains and meeting strict national standards for safety, performance and sustainability.

Seatrium and ABB: Collaborative Strengths for Complex Offshore Engineering

Seatrium’s role as the EPC contractor for the project complements ABB’s technical contributions with its shipyard and fabrication capabilities. Two companies are executing a complex and large-scale engineering endeavor that involves meticulous coordination across continents, stringent safety regulations and unyielding quality benchmarks. ABB’s Energy Industries division, under the leadership of Per Erik Holsten, emphasized the need for scalable, high-performance solutions to meet the unique challenges of offshore energy production.

The collaboration exemplifies a global engineering synergy, leveraging ABB’s automation expertise and Seatrium’s offshore construction proficiency to deliver a new benchmark in FPSO development.

FPSO Market Outlook and Brazil’s Expanding Offshore Potential

Brazil’s offshore oil sector is experiencing dynamic growth, with projections indicating a potential $21 billion investment in new FPSO projects during 2026-2027. The global FPSO market itself is anticipated to reach $46.2 billion by 2033, driven by rising energy demands and the need for cost-efficient offshore platforms capable of extracting, processing and storing hydrocarbons in deepwater locations.

Petrobras’ P-84 and P-85 FPSOs are strategically designed to support this expansion, not only by increasing production but also introducing sustainable technologies that align with long-term environmental goals. These projects reflect Petrobras’ intent to remain at the forefront of offshore innovation while securing Brazil’s role as a top-tier global oil producer.

Petrobras’ Commitment to Operational Excellence and Sustainability

Petrobras is signaling a transformative shift toward digitalized, electrified offshore operations that prioritize efficiency and environmental responsibility through this high-tech initiative. By choosing ABB’s advanced systems and supporting local manufacturing, Petrobras is advancing technological sovereignty, cutting lifecycle costs and reducing greenhouse gas emissions compared with conventional turbine-driven FPSO systems.

This move is in direct alignment with global energy transition trends, where smart electrification and digital automation are becoming essential components of offshore platform design.

Looking Ahead: The Impact of the P-84 and P-85 Projects

While Petrobras prepares to commission the P-84 and P-85 FPSOs in the coming years, the ripple effects of this project will resonate throughout the global oil and gas industry. From enhanced energy security to breakthrough innovations in offshore safety and reliability, the collaborative effort between Petrobras, ABB and Seatrium exemplifies what is possible when engineering excellence, technological innovation and strategic foresight converge.

These vessels are not merely additions to Petrobras’ fleet, they are harbingers of a more intelligent, sustainable future for offshore oil production. As the world edges closer to a carbon-conscious energy paradigm, projects like this set the precedent for high-performance, low-impact offshore operations that meet today’s energy needs while preparing for tomorrow’s challenges.

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.

Subsea 7 is valued at $5.61 billion. The company is a global leader in delivering offshore projects and services for the energy industry, specializing in subsea engineering, construction and installation. Headquartered in Luxembourg, Subsea 7 supports both the oil & gas and renewable energy sectors with integrated solutions, including subsea infrastructure, heavy lifting and life-of-field services.

Paramount Resources is valued at $2.12 billion. It is a Calgary-based energy company engaged in the exploration and development of conventional and unconventional petroleum and natural gas reserves across Canada. Paramount Resources’ key assets include significant holdings in the Duvernay, Montney, Muskwa and Besa River formations located in Alberta and northeast British Columbia.

RPC is valued at $1.09 billion. The company provides a wide range of oilfield services and equipment to support the exploration, production and maintenance of oil and gas wells globally. RPC operates through Technical Services—offering pressure pumping, cementing, and well control—and Support Services, which rents tools and provides pipe handling and inspection.

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Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report
 
RPC, Inc. (RES): Free Stock Analysis Report
 
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