Petrobras Greenlights Funds for Second Phase of Brazil's Deepwater Scheme

Brazilian state-run oil company Petrobras has approved the final investment decision (FID) for Module 2 of its Sergipe Deep Waters (SEAP II) project in the Sergipe-Alagoas Basin, a move that will expand the availability of domestic natural gas and open a new production frontier in the country’s northeast.

The project targets high-quality light oil reservoirs ranging from 38 to 41 degrees API, located approximately 80 kilometers off the coast. It covers the Budião, Budião Noroeste, and Budião Sudeste fields under the BM-SEAL-4, BM-SEAL-4A, and BM-SEAL-10 concessions.

Petrobras is the operator of BM-SEAL-4 with a 75% stake, in partnership with ONGC Campos Limitada (25%), and holds 100% ownership of BM-SEAL-4A and BM-SEAL-10.

To support development, Petrobras is contracting a floating production, storage and offloading unit (FPSO) under a Build, Operate and Transfer (BOT) model. The unit will have capacity for 120,000 barrels of oil per day and 12 million cubic meters of gas per day. The company expects to conclude negotiations by the first half of 2026, with first oil scheduled for 2030, according to its 2026–2030 Business Plan.

The SEAP II project follows SEAP I, which includes fields such as Agulhinha, Agulhinha Oeste, Cavala, and Palombeta, located in BM-SEAL-10 and BM-SEAL-11. Petrobras is the operator of BM-SEAL-11 with a 60% interest alongside IBV Brasil Petróleo LTDA (40%), and owns 100% of BM-SEAL-10.

Combined, the Sergipe Deep Waters projects are expected to deliver up to 18 million cubic meters of gas per day, positioning the Northeast region as a new hub for investment.

The development will also mark a technological milestone, enabling production at water depths of over 2,500 meters, reaching up to 3,000 meters, with the use of next-generation innovations.