2023-2027 Capital Project Portfolio: The Strategy and Issues Behind the Challenge to Undertake the New FPSOs Necessary to Fulfill the Company's Pre-Salt Business Plan in Brazil

Abstract

The ambitious five-year strategic business plan for Petrobras presented a challenge for its Surface Installation Engineering Department. This paper explores the business case behind the strategy, initiatives and identified issues that enabled Petrobras to design, plan, contract, build and deliver more than fifteen new O&G production systems. The company transformation relied on strategic parallel initiatives. Four areas concentrated the efforts: Corporate Integration, Surface Installations, Subsea Systems and Reservoir Wells. This article focuses on the analysis of the technical actions in the Surface Installation department. Nonetheless, it summarizes the related essential efforts, as well. The optimization process started with high level assumptions, for instance to reinforce one company value. That is, to keep and develop a strong in-house technical knowledge. This allowed to continue a previous development initiative to create internal Concept and Basic Design Engineering for Standard FPSO Design. The major challenge occurred during the COVID-19 pandemic. Petrobras mobilized its longest and largest Organizational Response Structure (EOR) team in its history. It involved all company departments with direct contribution of more than a thousand employees assigned for two years. With deep respect to the lives impacted and lost, there were lessons learned in this process, although Petrobras managed to continue its essential operations. From Corporate Integration perspective, Petrobras actively managed its asset portfolio to reduce the company's debt. Combined with favorable commodity prices, it allowed the company to restore and increase its financial situation to invest in oil production development despite observed volatility in the macroeconomic scenario. Regarding Reservoir and Wells, innovative technology created conditions to reduce the overall completion time. Subsea Systems layout optimizations and a more efficient resource management like the PLSV assigned fleet present significant contribution to the results. Focusing on Surface Installations, in this article are detailed the actions taken to improve the internal conditions to meet the company's strategic plan. Firstly, the reinforcement of internal capacity for Concept and Basic Design Engineering in standard FPSO Design. The portfolio of FPSOs allowed design standardization process to evolve. Optimization in system machinery design templates saved time while respecting each project unique input design conditions. One of the results was a new series of FPSOs with All Electric concept design. It consequently tends to increase efficiency and overall reduction of greenhouse gas emissions. Another key point identified was the interface among Petrobras, its supply partners, and shipyards. Through a permanent FPSO market monitoring committee, the process of procuring technical qualification was updated and stimulated early engagement of critical equipment suppliers. Furthermore, Petrobras have been continuously improving the drafting of contract terms for each FPSO project to stimulate shared interest. Finally, there were also improvements during FPSO construction and commissioning phase. The above mentioned efforts are expected to increase the chances of Petrobras delivering its strategic plan and sustainable growth. There are lessons learned to undertake fifteen O&G production systems in a synchronous manner. This is a considerable number of offshore projects for any operator company.