Japanese shipbuilding and engineering firm Sumitomo Heavy Industries has secured its first-ever contract in the floating production, storage, and offloading (FPSO) sector — a significant milestone for the company as it expands into offshore energy infrastructure.
The groundbreaking contract was awarded earlier this week by leading FPSO operator Modec, and it covers the construction of the forward section of a “Next Generation” FPSO hull. This vessel is being developed for Shell’s Gato do Mato deepwater oil project located offshore Brazil.
A Modec spokesperson confirmed to Upstream that this marks Sumitomo Heavy Industries’ debut in the FPSO construction space, positioning the Japanese firm as a new player in the highly specialized and technically demanding offshore oil and gas sector.
The FPSO is a key component of Shell’s Gato do Mato project, which is expected to significantly boost Brazil’s offshore oil production in the coming years. The vessel will be capable of processing and storing large volumes of crude oil extracted from deepwater wells.
Sumitomo’s entry into this domain reflects a growing trend of traditional shipbuilders diversifying into offshore energy infrastructure to tap into rising demand, particularly in South America and West Africa.
Further details of the contract value and timeline for delivery have not been disclosed, but sources close to the project suggest fabrication work is expected to begin within the year.
