SBM Offshore and Petrobras have sealed a deal worth $12 billion covering a pair of floating production, storage and offloading vessels, Offshore Energy reports.

The agreement, confirmed by the offshore floater specialist, covers two FPSOs that Petrobras will deploy on its oil and gas development work offshore Brazil. The $12-billion figure attaches to the combined value of the duo — a scale of award that ranks among the largest single FPSO commitments in the current offshore cycle.

The deal reinforces the position of the Dutch-headquartered contractor as Petrobras's principal supplier of large-capacity floaters for Brazilian deepwater production. Petrobras has leaned heavily on leased-FPSO contracting models to build out production capacity across its pre-salt and post-salt portfolio, and SBM Offshore has captured the bulk of those awards over the past decade.

For SBM Offshore, the award adds a further leg of multi-year backlog. The company's order book already spans turnkey construction and 20-plus-year lease-and-operate contracts on units working for Petrobras offshore Brazil, and each newbuild award of this size carries decades of scheduled revenue through the operating phase, not just the construction milestone.

Details on which fields the two units will serve, their processing capacities, or their delivery schedules did not appear in the initial report. Offshore Energy, which published the item, did not specify the project names attached to the pair in the announcement as circulated.

What the deal does establish is the scale of Petrobras's continuing commitment to floating production as its core development architecture offshore Brazil. A $12-billion commitment for two vessels signals sustained capital allocation toward new production capacity at a time when the operator is balancing portfolio investment between established pre-salt trends and new frontier acreage.

For the FPSO supply chain — hull fabrication, topsides integration, mooring and umbilical contractors across Asia and Brazil — an award of this magnitude translates into multi-year work packages. Local-content obligations attached to Petrobras awards typically direct a share of that fabrication and integration work to Brazilian shipyards and suppliers.

The watch items now are formal contract disclosure by SBM Offshore, which will confirm the units' capacities, target fields, and first-oil windows, and Petrobras's own project statements on how the pair fits its production growth guidance.