Oil and Gas World

MODEC Awarded Contract by Equinor to Supply FPSO for offshore field in Brazil



Tokyo, Jan. 30, 2020

MODEC, Inc. ("MODEC") is pleased to announce that it has signed a Sales and Purchase Agreement (SPA) with Equinor Brasil Energia Ltda, a subsidiary of Equinor ASA ("Equinor"), to supply a Floating Production Storage and Offloading (FPSO) vessel for the Bacalhau (formerly Carcará) field offshore Brazil.

MODEC was awarded a Pre-Front End Engineering Design (Pre-FEED) contract for the FPSO in December 2018 and has now been selected as the turnkey contractor based upon its successful execution of the Pre-FEED contract and its response to the subsequent Invitation to Tender (ITT).

This contract is 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 FPSO scopes. Option for the contract is subject to Equinor's planned investment decision for the Bacalhau project late 2020.

The FPSO vessel will be deployed at the Bacalhau field, Block BM-S-8, located in the giant "pre-salt" region of the Santos Basin some 185 kilometers off the coast of the municipality of Ilhabela/SP, in the state of São Paulo. Equinor's field partners are ExxonMobil (40%) and Petrogal Brasil (20 %)

MODEC will be responsible for the design and construction of the FPSO, including topsides processing equipment as well as hull and marine systems. The FPSO vessel will be permanently moored at a water depth of approximately 2,050 meters by a spread mooring system to be supplied by MODEC group company, SOFEC, Inc. First oil production is planned in the 2023-2024 timeframe.

The FPSO will be the largest FPSO ever delivered to Brazil. It will have a large topside designed to produce up to 220,000 barrels of crude oil per day, produce and inject up to 530 million standard cubic feet of associated gas per day and inject up to 200,000 barrels of seawater per day. Its minimum storage capacity of crude oil will be 2,000,000 barrels.

The FPSO will be the second application of MODEC's "M350 Hull", a next generation new built hull for FPSOs, full double hull design, which has been developed to accommodate larger topsides and larger storage capacity than conventional VLCC tankers, with a longer design service life. The hull will be built by Dalian Shipbuilding Industry Co., Ltd. (DSIC) in Dalian, China.

"We are extremely honored and proud to have been selected to provide a world class FPSO for Bacalhau project which is Equinor's first pre-salt project in Brazil," commented Yuji Kozai, President and CEO of MODEC. "We believe this is the start of a long-term relationship with our clients Equinor, ExxonMobil and Petrogal Brasil and an opportunity that strengthens MODEC's position as the leading FPSO service provider to the industry. We are committed to carry out this major project by cooperating closely with our clients in order to contribute to the advancement of the energy industry in Brazil."

The FPSO will be MODEC's 17th FPSO/FSO vessel in Brazil and MODEC's 9th FPSO in the pre-salt region, as well as MODEC's first contract with Equinor.

Global Engineering Contractor Aibel has announced that the company's LOI with MODEC, Inc. has been converted into a firm contract, and the company will commence the construction of up to 20000 Tons of Topsides for Equinor's future Bacalhau FPSO, to be deployed in Brazil.

The project will be managed from Singapore office with support from the engineering office in Thailand. Construction of the modules will take place at Aibel's yard in Laem Chabang, Thailand.

Keppel Offshore & Marine through its wholly-owned subsidiary Keppel Shipyard Ltd., Singapore, has been awarded contracts worth around S$250 million for the conversion of a Floating Storage and Regasification Unit (FSRU), integration of a Floating Production Storage and Offloading (FPSO) vessel, and the jumboisation of two Trailing Suction Hopper Dredgers (TSHD).

For the first contract, Keppel Shipyard has received the Final Notice to Proceed (FNTP) from GAS-fifteen Ltd, a wholly-owned subsidiary of GasLog Carriers Ltd, for the Engineering Procurement Construction (EPC) conversion of a Liquefied Natural Gas (LNG) Carrier into an FSRU.

The second contract is between Keppel Shipyard and MODEC Offshore Production Systems (Singapore) Pte. Ltd. (MODEC, Inc.) for the installation and integration of topside modules on board the Bacalhau FPSO. The yard’s scope of work will also include the fabrication of a flare tower and two crane pedestals, the assembly and installation of two deck cranes, as well as completion and commissioning support for MODEC.

The hull of the FPSO is expected to arrive in Singapore in 2H 2022, with delivery scheduled for 2H 2023. Upon completion, the FPSO will be deployed to serve in the Bacalhau field located in the Santos Basin, offshore Brazil for Equinor and its field partners. The FPSO will be a newbuild based on Modec M350 FPSO design.

#fpso #keppeloffshoremarine #epc #shipyard #upstream #energy #bacalhau #fsru #modec #equinor

Demonstrates international FPSO capabilities

Initially, Aibel was awarded a FEED contract for the Bacalhau project by MODEC in early 2020. In January 2021, the two companies then signed an EPC contract for the delivery of approx. 20,000 tons topside modules for the giant Bacalhau FPSO (Floating Production Storage and Offloading). The end client and operator of the FPSO is Equinor.

The contract includes detail engineering, bulk procurement and constructions of the topside modules. The project is managed and executed from Aibel’s Singapore office with assistance from the company’s engineering office in Thailand. Construction activities will take place at the yard in Laem Chabang, Thailand.

Prefabrication for the topside modules started in April 2021. After completion, the topside modules will be transported to Singapore in the end of 2022 for integration on board the hull, which will be built in China.

Bacalhau FPSO Topside Project First Cutting Ceremony

2021/06/03



Equinor and Mitsui Offshore Development Corporation (MODEC) conducted the first cutting ceremony of the Bacalhau FPSO Topside project in the afternoon of June 1 at the construction site of the port in BOMESC.

The Bacalhau FPSO, owned by Equinor of Norway, is the first phase of the Bacalhau field in Brazil's pre-salt Santos Basin, acquired by Equinor. It will operate on blocks BM-S-8 and North Carcara in Brazil's Santos Basin, and will be one of the largest FPSOs in Brazilian waters in terms of production and reserves. The Bacalhau FPSO is 364 meters long, 64 meters wide and 33 meters deep, with a designed draft of 22.65 meters. It can withstand the once-in-a-century environmental conditions in Brazil's local waters and is the world's first gas-turbine closed-loop power generation system.

BOMESC has always been committed to adhering to the "safety first, quality and quantity, and delivery time" in the construction of the project. In order to meet the requirements of high quality work, careful construction plans were made at the beginning of the construction, so as to ensure the construction of all links of the subsequent project and the orderly cooperation among various specialties.

On such an important milestone today, the representatives of the three parties witnessed this important moment, and will also show the firm determination and commitment of BOMESC in the future work.

FPSO Bacalhau - World First New Built FPSO with DNV Abate Notation

MODEC, Inc. (“MODEC”) is pleased to announce that FPSO Bacalhau has received the Approval in Principle (AiP) for Abate Notation from classification society DNV, making it the first new built FPSO in the world to achieve this prestigious recognition.

In this project, a comprehensive assessment of greenhouse gas emissions abatement on FPSO Bacalhau was conducted according to DNV guidelines*1. The Abate notation requires stringent management of emission systems (similar to ISO 50001 Energy Management requirements) and the implementation of substantial abatement measures onboard to prevent non-emergency flaring and optimize the efficiency of power/heat generation. These measures have positioned FPSO Bacalhau at the forefront of the industry for the lowest carbon emissions per barrel of oil produced.

The overview of the measures is shown below. MODEC obtained AiP of Abate Notation (P+, F, Pr, S) for FPSO Bacalhau.



MODEC especially acknowledges Equinor ASA, the ultimate customer for the FPSO Bacalhau project, for having the foresight and willingness to initiate many of the technical requirements incorporated into the FPSO Bacalhau, which has resulted in her being an environmentally friendly FPSO.

The award was presented to Mr. Eric Powell, Vice President & COO of MODEC Singapore, by Mr. Torgeir Sterri, Director of Offshore Classification at DNV, during the DNV Regional Offshore Committee (ROC) meeting held on May 30, 2024.

The DNV ROC meeting serves as a platform for senior executives in the region to engage in strategic discussions on common industry challenges, share knowledge and insights into various business-critical issues, and explore opportunities arising from technological developments to shape the future of the offshore industry. The event was widely attended by experts and senior management from oil majors, EPC contractors and fleet owners.

“Receiving the DNV Abate notation is an affirmation of our commitment towards the development of a sustainable future. We play our part in climate change mitigation by minimizing greenhouse gases and other emissions across our business operations and supply chain, and by developing clean energy solutions to achieve global goals,” says Eric Powell.

This milestone represents a significant step towards MODEC’s ambitious decarbonization targets. MODEC aspires to continue our contributions to a stable and sustainable energy supply through its business activities, including Project engineering, procurement, construction, and installation (EPCI), Supply Chain relationships, and ultimately, the operation phase.

The first M350 FPSO Hull successfully delivered in DSIC Dalian

The first M350 floating, production, storage and offloading (FPSO) Bacalhau Hull, jointly developed by DSIC and MODEC, is successfully delivered in DSIC Dalian on May 26th, 2023. This M350 Hull design was developed jointly by DSIC and MODEC. With the successful delivery of this project, DSIC has made a breakthrough in the Chinese shipbuilding industry.



The FPSO vessel hull and living quarter building project (FPSO-8) is the seventh FPSO new built and delivered by DSIC. It is DSIC’s first collaboration on a newbuild FPSO Hull with international energy company, Equinor, headquartered in Norway and MODEC, the famous FPSO Contractor and Owner. This new type of FPSO vessel has moved from concept to practice, delivering digital operation and maintenance by utilizing full 3D design and visual construction. It is the world's first large offshore project designed with the latest rules and regulations of Det Norske Veritas. It can meet the special marine environmental conditions in Brazil and other regions, being suitable for oil and gas development operations in offshore waters around the world. It can help to significantly reduce owner operating costs.



This FPSO will be deployed for offshore oil and gas production with processes of oil and gas separation, of slop oil/water treatment, power generation, heating, storage and transportation of crude oil products. The project is a comprehensive large-scale offshore oil production base that integrates personnel residence and production command system. The oilfield is the Santos Basin off the coast of Sao Paulo, Brazil. It is a floating production storage and offloading vessel with the largest storage and production capacity in Brazilian waters.

This FPSO is classified by Det Norske Veritas and flies the flag of Bahamas. The material scale and scale parameters are the largest in the world, with a total length of 364 meters, beam of 64 meters, depth of 33 meters, design draft of 22.65 meters, displacement of more than 460,000 tons, and a deck area of 17,400 square meters, equivalent to three standard football fields. After it is put into operation, it can process 220,000 barrels of crude oil each day. This production capacity is equivalent to the capacity of a ten square miles land based oil refinery facility. Among them, the oil and gas processing topsides modules weigh 50,000 tons. There are as many as 34,000 pipes spools in the whole vessel, weighing about 4,000 tons, and the total length of the cables is about 800,000 meters, which is equivalent to the straight distance from Dalian to Shanghai. The coating area is about 880,000 square meters, and the construction volume of each trade is three times that of ordinary super-large crude oil carriers.

Successful and extensive application of a variety of long-term anti-corrosion materials such as titanium alloy pipes, heat-resistant alloy pipes, super duplex stainless steel pipes and the modified GRE pipe used for fire protection systems, breaking through the difficulties of welding process, painting process and installation process, achieving the FPSO in the oil field requires only a low level of maintenance and meets the 30 years design life without dry docking requirement. There are 22 cargo oil tanks with a full-load oil storage capacity of 2 million barrels. There are two offloading stations, the forward and aft one which will makes the offloading very easy and flexible during operations.

　This project required high standards, a large quantity of materials, a tight schedule and massive interfaces; all of which was challenging to DSIC’s engineering, procurement and construction. In addition, the vessel construction was challenged by the COVID-19 pandemic. All the parties worked together with the spirit of “One Team, One Goal” to mitigate and overcome the difficulties with manpower and logistics. With combined efforts of all parties, we have achieved successful sail-away of Bacalhau FPSO Hull and Living Quarters, setting a model of full cooperation in the industry.