SBM Offshore Inks Charter Contracts for Two FPSOs

SBM Offshore announced that contracts have been executed with BM-S-11 subsidiary Tupi BV on 12 July 2013 for the twenty-year charter and operation of the two (2) FPSOs Cidade de Maricà and Cidade de Saquarema.

Both FPSOs are destined for 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 owned by affiliated companies of SBM Offshore, Mitsubishi Corporation, Nippon Yusen Kabushiki Kaisha, and Queiroz Galvão Óleo e Gás S.A. in which SBM Offshore shareholding will be 56%.

SBM Offshore is in charge of the construction. The two FPSOs will be direct copies of the blueprint for FPSO Cidade de Ilhabela, which is scheduled to launch next year. In addition, Cidade de Maricà and Cidade de Saquarema will also benefit from the technological expertise and experience that the Company acquired during the successful completion of FPSO Cidade de Paraty – the first of four state-of-the-art, pre-salt FPSOs to start production offshore Brazil.

Planned delivery for FPSOs Cidade de Maricà and Cidade de Saquarema is expected respectively by end 2015 and early 2016.

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

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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SBM Offshore, July 16, 2013