SBM Offshore Wins Two FPSO Contracts from Petrobras (Brazil)

SBM Offshore announced that it has received a Letter of Intent (LOI) for the twenty year charter and operation of two (2) FPSOs from BM-S-11 subsidiary Tupi BV on 22 March 2013.

The FPSOs will be deployed at the Lula field in the pre-salt province offshore Brazil. BM-S-11 block is under concession to a consortium comprised of PETROBRAS (65%), BG E&P Brasil Ltda. (25%), and Petrogal Brasil S.A.(10%).

The FPSOs will be owned and operated by a Joint Venture company owned by SBM Offshore with other partners including Queiroz Galvão Óleo e Gás S.A.(QGOG). SBM Offshore will be in charge of the construction of the two FPSOs with planned delivery expected respectively by end 2015 and early 2016.

The FPSOs will be executed with significant local Brazilian content, with substantial parts of the project management, procurement and engineering services carried out in Brazil. A substantial part of the topside module fabrication, integration, and commissioning will be performed at the Brasa yard, jointly owned and managed by SBM Offshore, near Rio de Janeiro in Brazil.

Both FPSOs will be deployed in the Lula fields some 300 kilometres offshore Rio de Janeiro. SBM Offshore will convert two double hull sister vessels into FPSOs, to be moored in approximately 2,300 metres water depth and with a storage capacity of 1.6 million bbl each. The topside facilities of each FPSO come in at around 22,000 tons, will be able to produce 150,000 bpd of well fluids and have associated gas treatment capacity of 6,000,000 Sm3/d. The water injection capacity of the FPSOs will be 200,000 bpd each.

The total Contract Value for which the Joint Venture company owned by SBM Offshore and QGOG will acquire the two FPSOs is approximately US$ 3.5 Billion.

Contract finalisation is expected by Q2 2013.

Bruno Chabas, CEO of SBM Offshore commented:

“We are delighted to have been selected by Petrobras for this significant project and look forward to starting work on the FPSOs, which are amongst the largest ever built by SBM Offshore. Jointly, the two FPSO’s represent the biggest contract ever awarded to us, underlining our unparalleled expertise and leading position in the market for large-scale tanker conversions to FPSOs.”