Japan’s MODEC has awarded Norway’s Aibel a letter of intent (LOI) in connection with MODEC’s supply of a newbuilt FPSO to Equinor for the Bacalhau field in Brazil.
MODEC has recently signed a sales and purchase agreement with Equinor to supply a floating production storage and offloading (FPSO) vessel for the Bacalhau (formerly Carcará) field offshore Brazil.
According to MODEC, 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.
Announcing its letter of intent with MODEC on Wednesday, Aibel said it covers a FEED phase for management and basic engineering services with option for an EPC contract including detail engineering, bulk procurement and construction of approx. 20,000 tons topside modules for the giant FPSO vessel.
“With this major project, we are looking forward to further develop the good and long-established relationships we have with both MODEC and end-client Equinor, and at the same time prove ourselves worthy of the trust we are given,” said President and CEO in Aibel, Mads Andersen.
The project will be managed from Aibel’s Singapore office, where Aibel and MODEC will establish an integrated project team. Aibel’s engineering office in Thailand will assist with detail engineering. Construction of the 20,000 tons modules will take place at Aibel’s recently expanded and upgraded yard facilities in Laem Chabang, Thailand.
As a result of the contract, Aibel will now expand its engineering organization in Singapore.
EVP Field Development and Offshore Wind in Aibel, Nils Arne Hatleskog, said: “Over the years, our Singapore office has developed solid expertise within the FPSO field from early concept and study to final execution, and therefore it has become a hub for our strategic focus on the international FPSO market. We see a major potential in this market, and with this contract and a significant expansion of the office, we will put ourselves in a favorable position for future contracts.”