Brazil: OSX Enters LOI with SBM Offshore for Construction of New FPSO

OSX Brasil S.A. (“OSX”), a Brazilian corporation engaged in the equipment and services sector for the offshore oil and gas industry, by means of integrated operations in shipbuilding, chartering of exploration and production (E&P) units, and operation and maintenance (O&M) services, announces that OSX Leasing Group B.V., a subsidiary of OSX, entered into a Letter of Intent (LOI) with SBM Offshore (Single Buoy Moorings Inc Offshore), to start project activities for the engineering, procurement, construction, and installation (EPCI) of FPSO OSX-2 (Floating Production Storage and Offloading vessel), to be chartered and operated by OSX to its client OGX for 20 years in the Campos Basin.

The FPSO OSX-2 will have oil production capacity of 100.000 bopd, storage capacity of 1.300.000 bbls and total estimated CAPEX of US$ 775 million, as it shall be provided for in the relevant EPCI definitive agreement currently in negotiation between OSX and SBM.

After the EPCI signature, the chartering of FPSO OSX-2 shall be contracted between OGX and OSX, providing for an average daily rate around US$ 290.000,00, with oil production start-up expected for mid of 2013.

The banks ING Bank N.V. and Santander (Brasil) S.A. were mandated joint lead arrangers for the financing of up to 80% of the total CAPEX of FPSO OSX-2.

“This initiative reaffirms OSX´s commitment to supply our clients with integrated solutions of equipment and services for the offshore oil and gas industry, contributing for the development of the production of the oil and gas that are being discovered in our country”, stated Luiz Eduardo Carneiro, OSX´s CEO.

Photo*: OSX FPSO

[mappress]

Source:OSX,March 30, 2011;