FPSO Value Creation Portfolio Conception and Management

Abstract

Abstract In the beginning of 2021, Petrobras created its future vision for floating production storage and offloading (FPSO) projects and decided to create a value creation program based in the following aspects: build an interdepartmental effort (Engineering, Research & Development [R&D], and Operation), with a strategic approach through key topics, channeling resources to add value to our projects. Besides, the idea was to concentrate the innovation pipeline in a single governance, creating a discussion forum apart from projects schedule (conceptual and front-end engineering design [FEED] development). The challenges related to future projects were mapped and objectives and key performance indicators (KPIs) were defined: increase net present value (NPV) of FPSO projects and reduce human exposure to risk and greenhouse gas (GHG) emissions. The program, currently called FPSO+, is based on a portfolio of optimization and innovation projects (incremental and disruptive) to evaluate improvements in the designs (concept and FEED phases) where key problems are mapped, and solutions are searched inside the project teams, R&D initiatives, supply chain and through industry benchmark. Challenges and the required solutions are evaluated considering an integrated future vision for FPSOs, where Engineering, R&D and Operation work together to optimize total lifecycle cost of ownership (TLCO), reduce emissions and reduce human risk exposure. It was achieved a reduction around 16% in GHG emissions (kgCO2 e/boe, per new FPSO), 30% increase in NPV and approximately 4% reduction in man-hours exposed to risk (engineering, procurement, and construction [EPC] phase and offshore phase). These results are related to 2021 and 2022. The portfolio includes a variety of areas, from digital solutions to new processing concepts and from new coatings and non-metallic materials to design simplification. Management procedures were created for portfolio planning and execution, including a valuation guideline, new technologies risk assessment and KPIs for the teams involved. The valuation components (capital expenditure [CAPEX], operational expenditure [OPEX], GHG emissions, oil and gas production impacts) required a strategy to be obtained from solid technical data and reliable sources.