Mitsubishi Corporation Pens Deal for Two FPSOs in Brazil

A Mitsubishi Corporation (MC) joint venture has entered into contract with a consortium led by Brazil’s national oil company, Petróleo Brasileiro S.A.(Petrobras) –led Consortium for the charter, operation and maintenance of two Floating, Production, Storage and Offloading (FPSO) systems in Brazil.

The MC joint venture has established with Nippon Yusen Kabushiki Kaisha (NYK Line), SBM Offshore N.V. (SBM), a global leader in the business, and Brazilian private oil and gas service provider Queiroz Galvão Óleo e Gás S.A (QGOG).

The two FPSOs will be constructed by converting large crude tankers, and will be used in development at the Lula Alto and Lula Central oil fields, operated by Petrobras, off the coast of Brazil. The FPSOs are scheduled to start production operation from around the beginning of year 2016.

As companies explore the development of oil and gas resources in response to the need for securing sustainable energy supplies globally, the development of offshore oil and gas fields is becoming more important. Rich in offshore oil reserves, Brazil is considered an important player in the offshore oil market. In this context, the Lula Alto and Lula Central projects are of major importance for the joint venture led by Petrobras.

These projects mark the second and third such for MC based on the long-term cooperation agreement signed with SBM in February 2011 since its participation in the development of an FPSO for use in the northern part of Sapinhoá oil field, also located off the coast of Brazil. Through the long-term cooperation agreement, MC will actively continue to expand its FPSO business worldwide, with the core of its activities in Brazil.

[mappress]
Press release, July 17, 2013