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SBM Offshore awarded letter of intent for FPSO lease and operate contracts

Published by , Editorial Assistant
Tanks and Terminals,

SBM Offshore is pleased to announce that it has signed a letter of intent (LOI) together with Petrobras for a 22.5 year lease and operation of the FPSO Mero 2, to be deployed at the Mero field in the Santos Basin offshore Brazil, 180 km offshore Rio de Janeiro.

The Libra block, where the Mero field is located, is under a production sharing agreement to a consortium comprised of Petrobras, as the operator, with 40%, Shell with 20%, Total with 20%, CNODC with 10% and CNOOC Limited with a 10% interest. The consortium also has the participation of the state-owned company Pré-Sal Petróleo SA (PPSA) as manager of the production sharing contract.

SBM Offshore will design and construct the FPSO Mero 2 using its industry leading Fast4WardTM program as it incorporates the company’s new build, multi-purpose hull combined with several standardised topside modules. This means that two out of three Fast4Ward hulls currently under construction have now formally been allocated to projects.

The FPSO will be designed to produce 180 000 bpd of oil. Furthermore, the FPSO will have a water injection capacity of 250 000 bpd, associated gas treatment capacity of 12 million standard m3/d and a minimum storage capacity of 1.4 million bbl of crude oil. The weight of the FPSO topside modules will be around 33 000 t. The FPSO will be spread moored in approximately 2000 m water depth. Delivery of the FPSO is expected in 2022.

Bruno Chabas, CEO of SBM Offshore commented: “The signing of this letter of intent demonstrates again that SBM Offshore has started a new era of growth. Not only does this award represent the company’s re-entry in Brazil, one of the most important markets for the Company with one of our key customers, it also re-confirms the competitiveness of our Fast4Ward concept while expanding its geographical reach.”

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