As the global FPSO market continues to heat up and a new wave of bidding for offshore equipment surges in South America and Africa, South Korea’s Hanwha Ocean has returned to the global offshore construction stage after four years, signaling its renewed push into the offshore market.
It is reported that Hanwha Ocean will participate in the bidding for the engineering, procurement, and construction (EPC) project of the FPSO “P-86” for Petrobras’ deepwater oilfield development in Brazil this year. This marks the company’s first FPSO project challenge since its acquisition by Hanwha Group in 2023 and rebranding from Daewoo Shipbuilding & Marine Engineering to Hanwha Ocean. It also represents the company’s re-entry into the global offshore equipment market after a four-year hiatus, following its last EPC contract for Petrobras’ FPSO “P-79” in June 2021, secured through a multinational consortium with Saipem, a subsidiary of Italy’s ENI.
To boost production at Brazil’s Marlim Sul and Marlim Leste oilfields, Petrobras officially launched the tender for the “P-86” FPSO project in October last year. Under Petrobras’ plan, $64 billion will be invested in oilfield exploration and production by the end of 2027, with the goal of introducing 11 more FPSOs to increase output to 2.4 million barrels of oil per day.
The “P-86” FPSO is a medium-sized vessel with a daily production capacity of 140,000 barrels of oil and 7 million cubic meters of natural gas. Petrobras initially set the bidding deadline for April this year but later extended it to June 6, citing oil price volatility and rising FPSO costs, before pushing it further to November 3.
Shipbuilders from South Korea, China, Singapore, Malaysia, Brazil, and other countries will compete for the “P-86” FPSO project, with Hanwha Ocean being the sole South Korean participant. This is because HD Hyundai Heavy Industries and Samsung Heavy Industries are focusing on floating liquefied natural gas (FLNG) projects and opted out of the bid due to scheduling constraints.
The project follows a Build-Operate-Transfer (BOT) model, requiring the winning bidder to construct and operate the FPSO before transferring it to Petrobras, placing higher demands on financial and management capabilities.
FPSOs, often called “floating oil refineries,” are complex to build, require high integration and precision, and cost significantly more than conventional commercial vessels, with prices typically ranging from $1 billion to $1.5 billion, sometimes exceeding $2 billion. South Korean industry insiders note that FPSOs have long been a focus and strength for the country’s shipbuilders, with single contracts capable of delivering massive orders in a short time.
To date, Hanwha Ocean has secured orders for eight FPSOs, delivering seven, with one currently under construction.
In recent years, FPSO prices have surged. Last year, Petrobras ordered two FPSOs, “P-85” and “P-84,” for $4.07 billion each, setting a global record—a 75% increase compared to the $2.3 billion price tag for the “P-79” FPSO contracted in 2021.
Notably, “P-85” and “P-84” are Petrobras’ largest-ever FPSOs and among the biggest globally. Both were built by Singapore’s offshore giant Seatrium, which subcontracted the hull, living quarters, and some module EPC work to China’s CIMC Raffles in July 2024.
Industry experts predict that rising demand for new FPSOs in South America (Brazil, Guyana) and West Africa will expand the market from $12 billion (approx. RMB 85.98 billion) in 2024 to $18 billion (approx. RMB 128.97 billion) by 2029, with 83 FPSOs expected to be ordered globally by 2030.
To re-enter the offshore market, Hanwha Ocean has been transforming its marine business strategy. In April 2024, it hired Philippe Levy, former Americas president of Dutch offshore oil and gas service provider SBM Offshore, as head of its Marine Division. Levy will drive innovation based on his extensive global experience and project management expertise.
Hanwha Ocean aims to become an EPCIO (Engineering, Procurement, Construction, Installation, and Operation) solutions provider for floating offshore equipment like FPSOs, FLNGs, and marine renewables. Last year, it acquired Singapore’s Dyna-Mac, now rebranded as Hanwha Ocean Singapore, to bolster its offshore capabilities.
To accelerate its global offshore expansion, Hanwha Ocean established multiple overseas entities in Q3 2023, including two drilling-focused firms in the Cayman Islands.
In November 2024, the company opened its Global Project Center (GPC) in Amsterdam—its first European offshore hub—to oversee marine engineering and project management. The location leverages Amsterdam’s concentration of FPSO design firms for talent recruitment.
Hanwha Ocean has also made strides in next-gen FPSO R&D. In October 2024, its standardized FPSO pre-FEED design received concept approval from both ABS and BV, enabling cost- and time-efficient solutions for clients.
The FPSO measures 340 meters long and 62 meters wide, with a daily output of 190,000 barrels of crude and storage for 2.38 million barrels. Its topside module spans 17,600 square meters, handling up to 55,000 tons of oil and gas, while its hull is designed for 20-year operation.
With harsh marine conditions in West Africa—a key growth market—Hanwha Ocean plans to accelerate standardized FPSO development for deployment in South America and beyond.
At Offshore Korea 2024 in Busan, the company showcased cutting-edge offshore technologies, including the world’s largest FPSO capable of producing 220,000 barrels of crude and 4.4 million cubic meters of gas daily.
