Equinor awards two major contracts for the BM-C-33 project in Brazil

Equinor has, on behalf of the BM-C-33 license with partners Repsol Sinopec Brasil and Petrobras, awarded a contract for subsea umbilicals, risers and flowlines (SURF) to TechnipFMC, and a sales and purchase agreement (SPA) for the delivery of a floating production, storage and offloading (FPSO) unit to MODEC Inc.

“We are pleased to award these contracts to companies known for their expertise and quality, which will be important for these milestone deliveries to the BM-C-33 development,” says Geir Tungesvik, executive vice president for Projects, Drilling & Procurement.

“MODEC was also awarded the FPSO contract for our Bacalhau project, and we look forward to draw from experiences between the two projects, to ensure safe and efficient execution of the developments. We also have a long history of collaboration with TechnipFMC and we are pleased to continue our good collaboration on another major project development,” Tungesvik says.

“BM-C-33 is a world class asset in the Brazilian pre-salt Campos area. Brazil is a core growth area for Equinor, and the company has ambitions to deepen our presence in the country. BM-C-33 will be an important contributor to reach this goal, being a key gas supplier to the domestic market, contributing to industrial development and energy security locally. At the same time, we are committed to use technology to lower our emissions substantially. BM-C-33 has a carbon intensity target of less than 6 kg/boe over the field lifetime, while the global industry average is 16 kg CO2 per barrel,” says Veronica Coelho, Equinor’s senior vice president and country manager for Brazil.

BM-C-33 will use combined cycle technology on the FPSO to reduce the CO2 intensity.

The FPSO award is mainly one lump sum turnkey contract including engineering, procurement, construction and installation for the entire unit. FPSO expected delivery date is 2027. MODEC will also provide Equinor with operations and maintenance service of the FPSO for the first year from its start-up, after which Equinor plans to operate the unit.

Equinor has exercised an option with TechnipFMC following their front-end engineering design awarded in July 2022, to deliver integrated engineering, procurement, construction and installation for SURF. The SURF system will be installed in water depth of approximately 2900 metres, which is the deepest installation in Equinor’s history.

The contract, described by the supplier as a major award, includes delivery of Subsea 2.0™ tree systems, manifolds, jumpers, rigid risers and flowlines, umbilicals, pipeline end terminations, and subsea distribution and topside control equipment. TechnipFMC has a strong local presence and has also been awarded frame agreements for add-on equipment and subsea operational services.


Equinor and partners have decided to develop the BM-C-33 project in the Brazilian Pre-salt area, with an investment of approximately USD 9 billion.

Equinor and partners announce final investment decision for BM-C-33, in Brazil

Equinor (operator), Repsol Sinopec Brasil and Petrobras have taken the investment decision to develop the BM-C-33 project in Brazil. The investment is of approximately USD 9 billion.

Located in the Campos Basin, BM-C-33 comprises three different pre-salt discoveries – Pão de Açúcar, Gávea and Seat – containing natural gas and oil/condensate recoverable reserves above one billion barrels of oil equivalent.

The concept selected for BM-C-33 is based on an FPSO (Floating production storage and offloading unit), capable of processing gas and oil/condensate and specifying these for sale without a need for further onshore processing.


The FPSO’s production capacity is of 16 million cubic meters of gas per day with average exports expected of 14 million cubic meters of gas per day. Start-up is planned in 2028.

“The final investment decision of BM-C-33 is an important milestone for the partners and for Equinor. Together with partners and suppliers we have developed a significant project which will provide Brazil with energy to meet its growing energy demands and create value for owners and society, contributing to local industrial development. Brazil is one of Equinor’s core areas and the investment in BM-C-33 emphasizes the strategic importance of our Brazilian portfolio,” says Geir Tungesvik, executive vice president for Projects, Drilling & Procurement.


“BM-C-33 is one of the main projects in the country to bring new supplies of domestic gas, being a key contributor to the further development of the Brazilian gas market. Gas exported from the project could represent 15% of the total Brazilian gas demand at start-up. Its development will also contribute to the energy security and economic development, enabling a lot of new job opportunities locally,” says Veronica Coelho, Equinor’s Country Manager in Brazil.

Technology and low carbon initiatives driving the project

BM-C-33 will be Equinor’s second FPSO in Brazil using combined cycle gas turbines, significantly reducing carbon emissions during operations.

The technology will also be applied in Bacalhau, in the Santos Basin, and it combines a gas turbine with a steam turbine to take advantage of the excess heat that would otherwise be lost. By implementing this technology, the average CO2 intensity of BM-C-33 over its lifetime will be lower than 6 kilos per barrel of oil equivalent.

BM-C-33 will be the first project in Brazil to treat the gas offshore and be connected to the national grid without further onshore processing. The sales gas is planned to be exported through a 200 kilometres offshore gas pipeline from the FPSO to Cabiúnas, in the city of Macaé, in the state of Rio de Janeiro. Liquids are planned to be offloaded by shuttle tankers.

Facts about BM-C-33

• Partners: Equinor 35 % (operator), Repsol Sinopec Brasil 35 %, Petrobras 30%
• Discoveries were made by Repsol Sinopec in 2010
• Equinor became the operator in 2016
• The block is located in the Campos Basin pre-salt in Brazil
• The license is located approximately 200 km from shore, in water depths up to 2900 m
• It contains recoverable natural gas and oil/condensate of above 1.0 bn boe
• Gas export capacity is 16 MSm3/sd. It can represent 15% of the Brazilian gas demand at start-up
• FPSO capacity is approximately 126,000 bpd
• Start-up is expected in 2028

MODEC Awarded Contract by Equinor to Supply the 2nd FPSO in Brazil

MODEC, Inc. ("MODEC") is pleased to announce that it has signed a Sales and Purchase Agreement (SPA) with Equinor Brasil Energia Ltd, a subsidiary of Equinor ASA ("Equinor"), to supply a Floating Production, Storage and Offloading (FPSO) vessel to produce the field cluster of Pao de Acucar, Seat & Gavea in the BM-C-33 block of the Campos Basin offshore Brazil. The FPSO is one of the most complex facilities in MODEC’s history, handling large volumes of exported gas with a major focus on GHG emissions reduction.

The SPA is a two-phase lump sum turnkey contract covering both Front End Engineering Design (FEED) and Engineering, Procurement, Construction and Installation (EPCI) for the entire FPSO. As Equinor and partners announced the Final Investment Decision (FID) on May 8,2023 after the completion of the FEED which had started on April 2022, MODEC has now been awarded phase 2 of the contract for EPCI of the FPSO. MODEC will also provide Equinor with operations and maintenance service of the FPSO for the first year from its first oil production, after which Equinor plans to operate the FPSO.

The FPSO vessel will be deployed at the field, located in the giant "pre-salt" region at the southern part of Campos Basin, approximately 200 kilometers off the coast of Rio de Janeiro, and permanently moored at a water depth of approximately 2,900 meters. The spread mooring system will be supplied by MODEC group company, SOFEC, Inc. Equinor's field partners are Repsol Sinopec Brazil (35%) and Petrobras (30%). The FPSO delivery is expected in 2027.

MODEC will be responsible for the design and construction of the FPSO, including topsides processing equipment and hull marine systems. The FPSO will have topsides designed to produce approximately 125,000 barrels of crude oil per day as well as produce and export approximately 565 million standard cubic feet of associated gas per day. Its minimum storage capacity of crude oil will be 2,000,000 barrels.

The FPSO will apply MODEC’s new build, full double hull design, developed to accommodate larger topsides and larger storage capacity than conventional VLCC tankers, with a longer design service life.

Taking advantage of this larger topside space, this FPSO will be the second fully electrified FPSO equipped with Combined Cycle System for Power Generation which significantly reduces carbon emission compared with conventional Gas Turbine driven systems.

“We are extremely honored and proud to be selected to provide an FPSO for the BM-C-33 project,” commented Takeshi Kanamori, President and CEO of MODEC. “We are equally proud of the confidence Equinor obviously has in MODEC. We believe this award represents a strong relationship of trust between us built upon the ongoing Bacalhau FPSO project as well as our robust track record in the pre-salt region. We look forward to cooperating closely with Equinor and partners to make this project a success.”

The FPSO will be 18th FPSO/FSO vessel and 10th FPSO in the pre-salt region delivered by MODEC in Brazil.

Corinth Pipeworks is awarded contract for Equinor deep water pipeline in the Norwegian sea

Corinth Pipeworks has been awarded a contract to manufacture and supply approximately 15km of 23” and 26” longitudinally submerged arc welded steel pipes for Equinor’s IRPA field development project.

The IRPA gas discovery is located in the Vøring Basin, the deepest field development on the Norwegian continental shelf (1350 m deep) and will be developed as tie-in project to Aasta Hansteen platfrom. This offshore tie-in project will contribute to increased gas supply to Europe and extend the lifetime of the platform.

The pipes will be manufactured at Corinth Pipeworks’ facilities in Greece, and offshore installation work will commence according to schedule within 2025.

Ilias Bekiros, General Manager of Corinth Pipeworks, commented “CPW has had a huge impact in offshore pipeline markets in recent years, and we are proud to have successfully delivered our pipes to 20 major projects in the North Sea region over the last 5 years. We are particularly delighted to be working with Equinor, one of the pioneering global IOCs, and their frame agreement partner Mitsui, on this project.

MODEC’s Uaru FPSO Project for offshore Guyana proceeds to EPCI Phase

MODEC, Inc. ("MODEC") is pleased to announce that it will proceed with engineering, procurement, and construction on the Uaru Floating Production, Storage, and Offloading (FPSO) vessel following a final investment decision on the Uaru project by ExxonMobil Guyanaand its co-venturers on April 27, 2023.

Uaru is a significant addition to MODEC’s portfolio and it covers the Engineering, Procurement, Construction, and Installation (EPCI) of the FPSO. MODEC will also provide ExxonMobilwith operations and maintenance service of the FPSO for 10 yearsfrom its first oil production.

The Uaru FPSO is named ‘Errea Wittu’, which means ‘abundance’, and will be the fifth offshore FPSO in Guyana. The FPSO will combine the development of the Snoek, Mako and Uaru resources in the Stabroek block. It will be deployed approximately 200 kilometers offshore Guyana, at a water depth of 1690 meters, using a SOFEC Spread Mooring System, and it will be able to store around 2 million barrels of crude oil. ExxonMobil’s co-venturers on the Stabroek block are Hess Guyana Exploration LTD (30%) and CNOOC Petroleum Guyana Limited (25%).

Offshore Frontier Solution Pte. Ltd. (“OFS”), a MODEC Group Company and a joint venture with Toyo Engineering Corporation, launched inAugust 2022, will be responsible for the engineering, procurement,and construction of the FPSO based on MODEC’s M350TM new-build hull. The FPSO will have a topside designed to produce approximately 250,000 barrels of oil per day and will have associated gas treatment capacity of 540 million cubic feet per day, water injection capacity of 350,000 barrels per day and produced water capacity of 300,000 barrels per day.

“We are extremely honored to be chosen to provide a FPSO for the Uaru project”, commented Takeshi Kanamori, President & CEO of MODEC. “This isour first project with ExxonMobilsince we delivered FSO Kome Kribi 1 in Cameroon for Esso Chad in 2003. It is indeed a long-desired new project for MODEC, and we look forward to cooperating closely with the client and its co-venturers to make this project a success.”

The FPSO will be MODEC’s first for use in Guyana and it will be the 18th FPSO/FSO project delivered by MODEC for use in South America.

Petrobras on the development of block BM-C-33

Petrobras informs that it has approved, together with its partners Equinor and Repsol Sinopec Brasil, the final investment decision (Phase III) of block BM-C-33, operated by Equinor, located in the pre-salt of Campos Basin, in the state of Rio de Janeiro. The block is about 200 km offshore and has water depths of up to 2,900m. In BM-C-33 three gas and oil/condensate accumulations were discovered: Pão de Açúcar, SEAT and Gávea.

The project is based on production by wells connected to an FPSO (floating production, storage and offloading unit), with capacity to process produced oil/condensate and gas and specify them for sale. The transfer of the oil/condensate follows the model already adopted in the offshore systems, and the natural gas will be exported to the coast through a subsea pipeline that will connect to a receiving infrastructure located at the Cabiúnas Terminal - TECAB, and then connect to the gas transportation network.

The FPSO's oil/condensate processing capacity will be 20,000 m3/day and the gas production and export capacity will be 16 million m3/day, with an average natural gas export flow of about 14 million m3/day. Oil and gas reserves of over 1 billion barrels of oil equivalent (boe) are expected to be recovered.

Start-up is scheduled for 2028. The partnership for the development of this concession is composed by Equinor (35% - operator of the Block), Repsol Sinopec Brasil (35%) and Petrobras (30%).

Petrobras on the start-up of FPSO Anna Nery

Petrobras informs that the FPSO Anna Nery started production on May 07, 2023, in Campos Basin, within the project of revitalization of the Marlim and Voador fields, which will produce the post-salt reservoirs and Brava, located in the pre-salt of the two fields. The unit is capable of producing daily up to 70,000 barrels of oil and processing 4 million m³ of gas.

"This is the largest project in the world in the recovery of mature assets in the offshore industry. Through it, we will increase production, maintain jobs, and open an important learning and knowledge front for other similar projects throughout Brazil," said Jean Paul Prates, CEO of Petrobras.

The Anna Nery unit, of the FPSO (floating , production, storage and offloading unit) type, together with the Anita Garibaldi, also an FPSO, make up the first major revitalization project for mature fields in the Campos Basin.

The deployment of these two new production systems, appropriate to the mature field exploration format, provides operational continuity to the Marlim and Voador fields, increasing production to an average of 150,000 barrels of oil equivalent per day (boed), maintaining jobs and support services, and opening an important learning and knowledge front for other revitalization projects.

The FPSO Anna Nery is anchored in a water depth of 927 meters and interconnected to 32 wells, with peak production scheduled for 2025. The Marlim and Voador revitalization project will contribute to the recovery of the Campos Basin production, currently at about 560,000 boed. The projection for the basin's production is 900,000 boed in 2027.

Ithaca Energy Announces Agreement With Shell To Market Working Interests In Cambo

Ithaca Energy (LON: ITH) is pleased to announce it has signed an agreement with Shell U.K. Limited (“Shell”) which defines a marketing process for Shell’s 30% working interest in Cambo.

The Cambo field is the second largest undeveloped oil and gas discovery in the UK North Sea, located in the West of Shetland region. The development provides Ithaca Energy with long term production growth at a low expected unit operating cost per barrel. With its modern, energy efficient design and potential for electrification, Cambo could be one of the lowest-emission intensity assets in the North Sea. The field is expected to produce at less than half the CO2 intensity than the average UK field, enabled by the FPSO design which includes features such as being fully electrification ready (subject to grid connection availability), zero routine flaring and the Sevan FPSO hull design reducing power demand.

To enable the successful progression of the project towards final investment decision (“FID”), a number of outcomes are possible under the agreement:For Shell to market and sell a portion of its 30% working interest in Cambo, or the entire 30% interest;
In the event that Shell does not sell its entire 30% working interest, for Shell to sell any remaining portion of its own stake, which is not sold to a third party, to Ithaca Energy. The details of this agreement are outlined below.
For Shell to sell its entire 30% working interest and, if a potential buyer wanted a greater share of equity, for Ithaca Energy to sell up to 19.99% of Ithaca Energy’s working interest in Cambo.

The agreement entered into between Shell and Ithaca Energy dated 4 May, provides an option for Shell to sell any remaining portion of its own stake (“Option Stake”), which is not sold to a third party to Ithaca Energy, following the conclusion of the marketing process, that will run six months from the date of signing the agreement. In parallel, Ithaca Energy has an option to acquire the Option Stake, in each case subject to regulatory approval.

The transaction structure provides upfront certainty to Ithaca Energy, with very limited near-term cash outflow, in the event that either Ithaca Energy or Shell exercise their options in relation to the Option Stake when the marketing process concludes.Ithaca Energy has entered into the option to acquire the Option Stake at a value equating to $1.50 per boe of the P50 resource volumes being acquired pursuant to the development plan:Should development consent be granted by the North Sea Transition Authority (“NSTA”) on or before 30th June 2024, the P50 resource volume reference will be as per the latest field development plan submitted to the NSTA (approximately 173 mmboe gross)
Should development consent be granted by the NSTA after 30th June 2024, the P50 resource volume reference will be determined by the field development plan submitted to the NSTA at the time of development consent.
The potential transaction price is subject to a number of customary completion adjustments, which are expected to be immaterial to Ithaca Energy.
Ithaca Energy will not be required to pay the vast majority of the potential transaction price until the earlier of: (i) receipt of proceeds of any subsequent sale of a working interest in Cambo by Ithaca Energy; and (ii) first oil.
With the exception of minor payments at completion, or if Ithaca Energy subsequently sells a portion of its working interest in the Cambo field, no amounts will be payable should Ithaca Energy decide not to proceed with FID and/or if the NSTA do not provide development consent.

In all sale scenarios, Ithaca Energy would retain at least a 50% working interest in Cambo and will remain the operator of the asset.

Alan Bruce, Chief Executive Officer, Ithaca Energy, commented: “Our agreement with Shell represents a meaningful step towards the development of Cambo, the second largest undeveloped field in the UKCS and a key asset in helping maintain the UK’s future energy security. Securing a new owner for Shell’s stake is an important step in Ithaca Energy progressing to Final Investment Decision. Ithaca Energy’s primary strategic focus is to maximise sustainable shareholder returns through the delivery of our BUY, BUILD and BOOST strategy, including the future development of Cambo.

Ithaca Energy remains committed to investing in the UK North Sea, however, the impact of the amended Energy Profit Levy and the fiscal instability it has created continues to constrain our ability to invest. We are actively engaging, in a constructive manner, with the UK government in pursuit of the fiscal stability required to make critical investment decisions that will support the UK’s long-term energy security.”

Shell’s Senior Vice President, UK Upstream, Simon Roddy, added: “Following an internal review, we have decided to sell our 30% working interest in Cambo and have agreed a process with Ithaca Energy for the sale of Shell’s stake in the field this year. We wish Ithaca Energy well in the future development of the field, which will be important to maintain the UK’s energy security and to sustaining domestic production of the fuels that people and businesses need.”

Shell To Sell Interest In Browse Project

Shell Australia has signed an agreement with BP for the sale of Shell’s interests in the Browse Project subject to regulatory approvals.

Browse remains an important Australian resource which if developed will provide much needed energy to customers as the energy market transitions towards lower carbon energy.

The Browse project includes Brecknock, Calliance and Torosa Gas and Condensate Fields and the Browse LNG Terminal

Shell regularly assesses its portfolio to inform capital allocation and maximise returns and performance however, the Browse asset is no longer a strategic fit in the context of Shell’s global portfolio.

TechnipFMC Awarded Large Subsea Contract for ExxonMobil Guyana’s Uaru Project

TechnipFMC (NYSE: FTI) has been awarded a large1 contract by ExxonMobil Corporation (NYSE: XOM) affiliate, Esso Exploration and Production Guyana Limited, to supply the subsea production system for the Uaru project.

TechnipFMC will provide project management, engineering, and manufacturing to deliver the overall subsea production system. The award covers 44 subsea trees and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment.

Jonathan Landes, President, Subsea at TechnipFMC, commented: “We are very proud to continue our relationship with ExxonMobil Guyana through this award, which is our fifth within the Stabroek block. This is ExxonMobil Guyana’s first project utilizing our Subsea 2.0™ system, which leverages our configure-to-order model to deliver on an accelerated schedule.”

TechnipFMC currently employs more than 100 Guyanese, and expects to continue to hire and train additional local staff in support of this award.