Petrobras PBR, an integrated oil and gas company of Brazil, has awarded an engineering, procurement, construction and installation (“EPCI”) contract worth R$8.4 billion to global offshore contractor Subsea 7 S.A. SUBCY. This strategic contract is central to the Búzios 11 Production Development Project, strengthening Petrobras’ commitment to local content, innovation and offshore expansion in the prolific Santos Basin.
The Búzios 11 Project forms part of the large-scale development of the Búzios field, one of the world’s largest deepwater oil discoveries, located in the pre-salt region of the Santos Basin. The project involves linking 15 wells to the P-83 floating production, storage and offloading (“FPSO”) unit. Of these, eight wells are designated as producers, while seven will function as alternating water and gas injectors, a configuration designed to enhance reservoir recovery and operational efficiency.
Scheduled to begin its offshore campaign in October 2027, this EPCI contract will significantly boost Brazil’s oil output and mark a critical phase in Petrobras' long-term offshore strategy.
The contract sets a minimum local content requirement of 40%, but Petrobras anticipates exceeding 50% local participation, reflecting its long-standing policy of encouraging national industry engagement. This requirement is not merely symbolic. It ensures the integration of Brazil’s suppliers and services in critical stages of the project.
According to Renata Baruzzi, Petrobras' director of Engineering, Technology and Innovation, this initiative strengthens national capabilities: "It brings suppliers closer to the company, expands the development of the entire national supply chain and generates jobs." This strategic focus on local content is expected to result in more than a thousand direct and indirect jobs, contributing to regional economic development.
Subsea7, a Luxembourg-based oil and gas equipment and services company, brings world-class expertise in subsea engineering, project management and offshore construction, positioning it as a key partner in delivering complex offshore infrastructure. The company will be responsible for engineering design, procurement of subsea equipment, construction and installation of flowlines and umbilicals, as well as critical connections between wells and the P-83 platform.
Subsea7’s scope will involve sophisticated technologies tailored for the unique challenges of the Búzios field, including deepwater operations at depths exceeding 2,000 meters, high pressures and corrosive environments. This collaboration is expected to set new benchmarks for project delivery and technical excellence in the region.
The Búzios 11 development is part of a consortium led by Petrobras, which holds the role of operator. Its partners include major China-based energy companies CNOOC and CNODC, along with PPSA, which oversees production sharing contracts on behalf of the government of Brazil. This partnership highlights the international confidence in Brazil’s deepwater resources and Petrobras’ operational leadership.
By fostering collaboration between state and global partners, the Búzios consortium enhances Brazil’s geopolitical significance in the global energy landscape and ensures the long-term sustainability of its pre-salt reserves.
The P-83 FPSO unit, to which all 15 wells will be connected, represents a cornerstone of the Búzios 11 infrastructure. Designed with advanced processing capabilities, the P-83 will be equipped to handle oil, water and gas separation, along with storage and export functionalities. The platform is expected to process up to 225,000 barrels of oil per day, reinforcing Brazil’s status as a top-tier oil exporter.
Incorporating cutting-edge automation and safety systems, the P-83 is emblematic of the high standards Petrobras applies across its offshore fleet, enabling operational safety and energy efficiency even in extreme marine environments.
Beyond production goals, the Búzios 11 project will have wide-ranging effects on Brazil’s offshore oil and gas ecosystem. With more than R$8.4 billion invested, the project will drive innovation across the supply chain, stimulate workforce training and deepen technical capabilities within Brazil’s industries.
Additionally, Petrobras is expected to implement environmental safeguards and sustainability metrics, aligning the project with global ESG standards. The combination of high local content and environmental responsibility makes Búzios 11 a model for future energy developments in Brazil and beyond.
The EPCI contract between Petrobras and Subsea7 for the Búzios 11 Project marks a significant landmark in Brazil’s offshore energy journey. By integrating engineering innovation, local industrial participation and international collaboration, the initiative strengthens Brazil’s position as a global leader in deepwater oil production. With the offshore campaign launching in 2027, Búzios 11 is poised to become a benchmark for pre-salt development, economically transformative and technologically advanced.
Currently, PBR holds a Zacks Rank #5 (Strong Sell), while SUBCY sports a Zacks Rank #1 (Strong Buy).
Investors interested in the energy sector might look at some better-ranked stocks Comstock Resources, Inc. CRK and Expand Energy Corporation EXE, each holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Comstock Resources is valued at $6.97 billion. Its shares have risen 111% over the past year. Comstock Resources is an independent energy producer in the United States, holding approximately 1.1 million acres primarily within the highly prospective Haynesville and Bossier shale regions of North Louisiana and East Texas. The company's core business involves the acquisition, exploration, development and production of natural gas and oil from these assets.
Expand Energy is valued at $27.35 billion, with its shares rising 27.8% over the past year. Based in Oklahoma City, OK, Expand Energy is an independent natural gas production company. With significant interests in shale formations across Pennsylvania, Ohio, West Virginia and Louisiana, the company focuses on the acquisition, exploration and development of properties for producing oil, natural gas and natural gas liquids.
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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
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