SBM Offshore, QGOG, and Partners Sign Major FPSO Deal

20-year charter contracts were executed last Friday by Brazilian offshore oil and gas subsidiary Tupi BV for the charter and operation of two new build FPSOs which will be installed at Brazil’s Lula Field in block BM-S-11.

The Lula field is under concession to a consortium comprised of Petrobras (65%), BG E&P Brasil (25%), and Petrogal Brasil S.A. (10%).

Once delivered, the FPSOs, named Cidade de Maricà and Cidade de Saquarema, will be owned and operated by a joint venture comprised of majority shareholder SBM Offshore, as well as Mitsubishi Corporation, Nippon Yusen Kabushiki Kaisha (NYK), and Queiroz Galvão Óleo e Gás S.A. (QGOG).

At a total contract value of USD $3.5 billion, the two FPSOs will be direct copies of the FPSO Cidade de Ilhabela, which is scheduled to launch next year from Guangzhou Dockyards in China.

SBM Offshore is in charge of the construction and planned delivery for the two FPSOs is expected respectively by end 2015 and early 2016. In a phone call with SBM Offshore, they note that both Guangzhou and Singapore-based Keppel Corporation will be directly involved in the building of these two FPSOs.

Bruno Chabas, CEO of SBM Offshore commented:

“We are delighted to confirm signature of this contract, within such a short interval of the Letter of Intent (22 March 2013). It is a sign of the commitment of both Petrobras and SBM to successfully fast-track this project. The FPSO teams – comprised of our most experienced personnel – have ramped up in record time since reception of the LOI and we are pleased to proceed with the official green light to full execution of the project.”

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