Offshore oil developments in Guyana and Brazil remain among the world’s most competitive, with production costs low enough to support continued investment in floating production, storage, and offloading (FPSO) vessels even if crude prices weaken, according to MODEC’s 2025 Integrated Report published on July 3.
The Japanese FPSO supplier said deepwater and ultra-deepwater projects in South America and West Africa continue to offer attractive economics, making them priority markets.
“Notably, projects in key deepwater and ultra-deepwater regions such as South America (Brazil and Guyana) and West Africa boast exceptionally low average production costs, ranging from USD $25 to USD $34 per barrel,” the company said.
MODEC noted that these regions also hold substantial oil reserves, providing operators with confidence to continue developing new projects. The company said it remains focused on these markets.
“We [MODEC] will continue to focus on development projects in these regions using FPSOs, which are a core part of our business and backed by extensive construction and operational experience. Through these efforts, we aim to ensure a stable and sustainable energy supply,” MODEC stated.
The report explained that as global energy demand continues to rise, growing electricity consumption driven by artificial intelligence and data centers, along with geopolitical uncertainty, is reinforcing the need for reliable oil and gas supplies.
MODEC said its experience in the Atlantic Margin positions it to benefit from future projects.
“Because, specifically, the oil production by FPSOs has become mainstream in the Atlantic Margin, which includes Brazil, Guyana, and West Africa, MODEC’s track record and reputation of trustworthiness play a critical role in development projects in these countries, representing a significant growth opportunity for the Company,” it said.
MODEC expanded its footprint into Guyana through ExxonMobil’s Uaru development in the Stabroek Block, where it is responsible for the engineering, procurement, construction, installation, and operation of the 250,000-barrel-per-day Errea Wittu FPSO under an initial 10-year contract. It also got a similar job to deliver an FPSO for the Hammerhead project.
In Brazil, MODEC is one of the country’s leading FPSO suppliers and operators, supporting numerous deepwater developments for Petrobras. The company has delivered projects such as the Almirante Barroso FPSO, with production capacity of 150,000 barrels of oil per day, while continuing to pursue additional contracts in Brazil’s prolific pre-salt fields, where Petrobras plans to deploy multiple new FPSOs.
