Brazil deepens cooperation with China on FPSOs: Balancing technological dependence and domestic shipyard revival
On April 28, Magda Chambriard, CEO of Petrobras (Brazil’s state-controlled oil company), held high-level meetings with executives from leading Chinese shipyards. These discussions marked a new phase in Brazil-China cooperation in the FPSO (Floating Production, Storage, and Offloading) sector.
The context for this move is Brazil’s urgent need to develop its ultra-deepwater oil fields—projects like the Búzios field alone require 12 FPSOs, with other fields such as Mero and Atapu also demanding significant floating production capacity.
EN 10253-2 Compliant P265GH Fittings
Increasing Dependence on Chinese Manufacturing for FPSOs
Sources indicate that these meetings highlighted Brazil’s growing reliance on Chinese manufacturing capabilities to deliver the next generation of FPSOs. Petrobras is simultaneously exploring opportunities to expand shipyard infrastructure both in China and within Brazil.
Over recent years, Brazil has accelerated its investments in deepwater oil and gas development, relying heavily on China, particularly for FPSO construction.
Several successful projects underscore China’s dominance in this field:
P-70 FPSO: Integrated by CNOOC Engineering, launched in 2020 as one of the world’s largest FPSOs, helping stabilize Brazil’s oil output during the pandemic.
FPSO Almirante Tamandaré: Scheduled to launch in 2025, built in China, with processing capacity for 225,000 barrels of oil and 12 million cubic meters of gas per day.
FPSO Guanabara: Operational since 2022 in the Mero field, supported by CNPC’s involvement, propelling Brazil’s deepwater production into the 35-million-ton range.
FPSO Bacalhau: Constructed by DSIC (Dalian Shipbuilding Industry Corporation).
FPSO BM-C-33: Built by COSCO Nantong Shipyard.
These achievements highlight China’s leading role in FPSO construction and its critical support to Brazil’s offshore oil industry.
Brazil’s Struggle and Efforts to Revive Its Domestic Shipbuilding Industry
Despite ambitious policies, Brazil’s efforts to rejuvenate its domestic shipbuilding industry face significant challenges. In February 2024, President Lula’s government launched the Fleet Expansion Program, aiming to invest 23 billion BRL to build 44 new vessels, including requirements for 40% local content in FPSO projects to stimulate employment and technological autonomy.
Yet, obstacles remain. Among 37 PSV (Platform Supply Vessel) orders placed in 2024, 25 went to Chinese shipyards, while only 12 were awarded to Brazilian yards.
Brazilian shipbuilders face constraints in technical expertise and production capacity, limiting the nation’s ability to fully localize its offshore equipment manufacturing.
Striking a Balance Between Dependence and Self-Reliance
Brazil’s dilemma lies in needing Chinese expertise for rapid offshore development while striving to avoid industrial hollowing-out.
The collaboration has evolved beyond simple procurement towards joint technological innovation. In 2024, the China-Brazil Innovation Center for Deepwater Oil and Gas Technology was established to enhance Brazil’s technical reserves through academia-industry cooperation.
In the global supply chain division, China focuses on FPSO core modules’ construction and integration, while Brazil aims to localize auxiliary vessels like PSVs and support infrastructure.
Moreover, Petrobras plans to lease 38 offshore support vessels by 2030, including 12 PSVs, with increasing local content requirements.
Geopolitically, Brazil is pursuing cooperation diversification, engaging partners like Shell and TotalEnergies in its Búzios field, while China maintains a significant foothold, such as CNOOC’s 7.34% stake in the field.
Brazil-China cooperation in the FPSO
Outlook: A Complex Interplay of Opportunities and Challenges
In the short term, Brazil’s dependence on China’s FPSO manufacturing expertise is unlikely to diminish. Chinese shipyards, with their mature supply chains and cost advantages, will continue to dominate Brazil’s offshore equipment market.
However, with the Lula administration’s push for industrial revitalization under the “New Brazil Industry” strategy, a gradual shift toward greater domestic production is expected. Brazilian shipyards are set to handle more orders, and technology transfer initiatives may slowly close the capability gap.
The collaboration between Brazil’s deepwater oil ambitions and China’s FPSO technology symbolizes the interconnected nature of the global energy and manufacturing sectors.
For Brazil, successfully balancing foreign dependence and domestic industrial development will be crucial for achieving true autonomy in its energy supply chain.
For China, these partnerships represent not only market opportunities but also key platforms for exporting technical standards and enhancing global supply chain influence.
Haihao Group pays attention to the development status of the FPSO and other large-scale ship markets, and actively participates in the construction of pipeline systems in this field. If you need products related to large-scale ship pipeline systems, please feel free to contact us.Email:sales@haihaogroup.com