Haihao Group shares updates on Gato do Mato FPSO project: Chinese offshore engineering companies enter final Negotiations

At Haihao Group, we closely monitor the latest developments in the global offshore energy sector and are excited to share important updates on the Gato do Mato FPSO project led by Shell Brazil. The project has entered a critical phase, with deep negotiations underway between MODEC and leading Chinese offshore engineering companies.

Hebei Haihao Group

Chinese Companies in Final Talks with MODEC for Gato do Mato FPSO Modules

Industry sources have revealed that MODEC has finalized a key components contract with COSCO Shipping Heavy Industry (CHI) and is currently engaged in intensive discussions with BOMESC Offshore Engineering Co., Ltd., COSCO Shipping Heavy Industry, and Yanda (Haimen) Heavy Equipment Manufacturing Co., Ltd. regarding the construction of topside modules for the Gato do Mato FPSO.

This collaboration highlights the strengthening position of Chinese enterprises in the global FPSO construction market and marks MODEC’s seventh major FPSO project in Brazil.

It is also worth noting that in April, MODEC signed a separate agreement with Sumitomo Heavy Industries for the hull construction of the Gato do Mato FPSO.

About the Gato do Mato FPSO Project

The Gato do Mato project is a significant pre-salt gas condensate field development by Shell Brazil, located approximately 200 km off the coast of Brazil in the Santos Basin, with a water depth of around 2,000 meters. It spans across the BM-S-54 and Sul de Gato do Mato blocks.

Shell Brazil plans to make the final investment decision (FID) by the first quarter of 2025. Upon approval, the Gato do Mato FPSO will serve as a key production unit capable of processing and storing stabilized crude oil, with offloading handled by shuttle tankers.

Technically, the FPSO must overcome ultra-deepwater engineering challenges, including ensuring equipment reliability under high-pressure, low-temperature conditions, the stability of long subsea pipelines, and production continuity in harsh offshore environments.

FPSO project

The Role of Chinese Offshore Companies

COSCO Shipping Heavy Industry (CHI):

With over 15 years of cooperation and 14 FPSO projects completed with MODEC, CHI is a trusted partner. Recent success stories include the Almirante Barroso MV32 FPSO, modified by COSCO Dalian, which boasts a 332-meter length, 1.4 million-barrel storage capacity, and daily oil processing of 150,000 barrels.

BOMESC Offshore Engineering:

BOMESC has solidified its position with MODEC through multiple collaborations. In April 2024, BOMESC’s fully owned subsidiary, Tianjin BOMESC, was entrusted with the design of some Gato do Mato FPSO modules. BOMESC previously completed the world-class FPSO SEPETIBA, one of the largest FPSOs in tonnage globally.

Yanda (Haimen) Heavy Equipment Manufacturing:

As a specialist in module construction, Yanda is expected to handle more standardized modules. The company has rich experience, having successfully delivered large international modules like the Shell Singapore PTC project and entered into a low-carbon strategic cooperation with Shell at the end of 2023.

MODEC’s Global FPSO Strategy

MODEC continues to strengthen its global supply chain, establishing offices in Kuala Lumpur, Malaysia, and India, while reinforcing its partnerships in China. Chinese shipyards, offering labor costs approximately one-third of Korean yards and 30% shorter modular construction cycles, have become key players in MODEC’s strategy.

A proven collaboration model has been established: Japanese companies supply core technologies and project management, Chinese shipyards undertake construction, and Brazilian energy giants such as Petrobras operate the FPSOs. This model was successfully demonstrated with the Almirante Barroso MV32 project, financed with $491 million from JBIC and leased for 21 years.

Global Impacts of the Gato do Mato FPSO Project

The Gato do Mato project is poised to:

Further cement the role of Chinese companies in the FPSO construction market.

Offer differentiated competitiveness for Chinese yards amid the Korean shipbuilding industry’s LNG dominance.

Reinforce Brazil’s status as a deepwater oil and gas powerhouse.

At Haihao Group, we recognize the significance of such landmark projects and continue to support the offshore industry by supplying high-quality piping components and integrated solutions tailored for complex offshore applications. Email:sales@haihaogroup.com