Brazil: SBM Offshore Receives LOI From Petrobras for Lease of FPSO for Tupi Nordeste Field

SBM Offshore N.V. is pleased to announce that one of its Affiliates and Queiroz Galvão Óleo e Gás S.A., have received a Letter Of Intent from PETROBRAS NETHERLANDS B.V.and PETROLEO BRASILEIRO S.A. – PETROBRAS as Operator of the Consortium BM-S-11, established by companies PETROBRAS (65%), BG E&P do Brasil LTDA (25%), and PETROGAL BRASIL LTDA (10%) for a twenty year charter and operation of an FPSO for the Tupi Nordeste development in the pre-salt area, offshore Brazil.

The Tupi Nordeste field is located in block BM-S-11 in the Santos basin at approximately 265 kilometres offshore and 2,100 metres water depth. The FPSO will include topside facilities to process 150,000 bpd of production fluids, associated gas treatment for 5,000,000 Sm3/d with compression and carbon dioxide removal and a water injection facility for 150,000 bpd.

It is the intention that the unit will be owned and operated by a consortium of affiliated companies of SBM Offshore, QGOG, Nippon Yusen Kabushiki Kaisha (NYK), and ITOCHU Corporation (ITOCHU).

The shareholding in the consortium is yet to be finalised depending on financing alternatives. Nevertheless, SBM Offshore’s share will not be less than 44.4% and not exceed 50.5%. The project schedule foresees delivery of the FPSO in 34 months from the LOI.

The non-discounted total of the revenues payable under this contract to the consortium amounts to approximately US$ 3.75 billion.

Source: Sbmoffshore, June 1, 2010;

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