Brazilian demand for platform supply vessels has surged since 2021 to a peak of 140 vessel-years last year, buoyed by new offshore developments and strong dayrates, prompting vessel owners to mobilize foreign-flagged units to Brazil. Last year’s fleet addition was smaller than in previous years, as a preview of flattening demand for high-specification vessels ahead. This year, we expect the supply of PSVs in the Brazilian market to slip slightly and remain steady toward 2030, with the outlook remaining the most positive for vessel owners with newer, high-specification units and a strong local presence through domestic fleets or partnerships.
Last year’s market conditions were characterized as a seller's market, in which vessel owners held significant leverage due to the limited supply of high-specification units. This period of procurement friction saw certain PSV tenders delayed, downsized and eventually canceled as the market contended with inflationary pressures.
Inflows: From surge to slowdown
Brazil recorded 69 inbound mobilizations and 24 outbound departures of PSVs between 2021 and 2025 – a cumulative net increase of 45 PSVs. Inbound activity was particularly strong in 2022-2024, in line with robust demand growth of 10% each year. Last year was an inflection point as the net inflow shrank to six vessels, the lowest year of growth in that period. This coincided with Brazil's PSV demand peaking, with an anticipated decline to 132 vessel-years this year and projected stable demand in the second half of the decade. Even with the reduction, Brazil remains the third-largest PSV market globally, trailing only the North Sea (167 vessel-years) and the Gulf of America (152 vessel-years).
The past five years of sustained supply growth corresponded with strong offshore investment in pre-salt fields, with 14 floating production, storage and offloading (FPSO) units starting up in the period. The growth also highlights the structural influence of Petrobras, which accounts for about 80% of the PSV market activity, meaning that the Brazilian flagship operator’s contracting and project timing decisions materially affect fleet dynamics.
Demand is also rising from other operators in Brazil, opening more opportunities for vessel owners. PRIO was the second-largest operator by PSV activity last year, as it integrated the Peregrino field, followed by Perenco's revitalization efforts and Equinor’s logistics for the Bacalhau FPSO startup. At the same time, increasing competition from adjacent markets, particularly Guyana and Suriname, is providing owners of high-specification tonnage with alternative deployment options elsewhere in South America.
Brazil opening to foreign-flagged vessels
Foreign PSVs can be brought in to Brazil to support offshore activity, but their participation in bids has historically been more constrained than that of local vessels. In practice, foreign units have faced a greater risk of displacement by Brazilian-flagged vessels during contracts, making direct entry less straightforward. In this context, the Brazilian Special Registry (REB) has become an important mechanism for expanding fleet availability. In broad terms, REB allows companies with qualifying Brazilian tonnage to bring foreign vessels into the market under a Brazilian flag, thereby reducing some of the barriers traditionally associated with foreign entry.
Operational data shows the growing role of foreign-flagged vessels. As demand went up, local units could no longer meet all the required specifications, and it became necessary to mobilize vessels from other markets. Activity for Brazilian-flagged units has been stable since 2023, while the arriving vessels have met demand growth. Foreign-flagged vessels accounted for almost no activity in 2021, and by last year they held a 20% market share, arriving from the US, Norway, Mexico, the Isle of Man, Liberia, and the UK.
Rates: North Sea compression creates Brazilian premium
North Sea PSV dayrates have weakened relative to Brazilian rates in recent years, boosting the economic incentives for repositioning vessels. The North Sea market faces oversupply, driven by declining demand in the UK and by operators' operational efficiency gains. In contrast, Brazilian rates have strengthened due to sustained demand growth, Petrobras’ preference for long-term contracts and higher-specification requirements. This has created a rate premium sufficient to justify transatlantic mobilization costs. From 2023 onward, Brazilian rates for higher-spec units rose sharply, reaching levels that strained operators.
Last year saw a particularly strong inflow of vessels to Brazil from the North Sea, with a net six units taking the trip from northern Europe – a reflection of the significant day rate difference between both regions.
In response to the rising dayrates, Brazilian operators have been adjusting their contracting strategies, reducing technical requirements, and deferring or canceling tenders. A notable example is Petrobras’ PSV lease tender last year: initially covering 17 vessels, it was successively postponed and downsized to six and then one vessel before being withdrawn. Operators have also sought to renegotiate existing contracts amid lower Brent prices and broader cost pressures.
In parallel, as fleet age rises, modernization and renewal needs are prompting companies to order new, more sustainable units. In December 2024, Petrobras awarded 12-year contracts for 12 newbuild PSVs of 5,000 deadweight tonnes each, all hybrid-powered and capable of operating on biofuels. The contracts were split between Bram Offshore and Starnav Servicos Maritimos, with the vessels to be built at Brazilian shipyards. Financing approval came last year, and construction has started.
Consequences
Stabilizing Brazilian PSV demand growth, combined with operators’ focus on cost efficiency, is creating a more challenging environment for PSV owners seeking to place surplus tonnage from other regions into Brazil without undermining current rate levels. As PSV demand is expected to gradually soften across most offshore basins, there are a few obvious alternative markets where owners can send vessels without firm contract cover.
At the same time, tightening effective supply in mature markets such as the North Sea and West Africa should continue to favor owners with younger, higher-spec fleets. In this context, competitive advantage will increasingly depend on fleet quality, local market access, and the ability to meet stricter sustainability requirements.
Authors:
Victor Claro
Analyst, Supply Chain Research
victor.claro@rystadenergy.com
Einar Michel
Senior Analyst, Supply Chain Research
einar.michel@rystadenergy.com
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