Cidade de Paraty FPSO on Hire Since Early June

SBM Offshore reported Thursday that its Cidade de Paraty FPSO vessel has been formally on hire offshore Brazil since June 7 following full systems acceptance by its client. The vessel continues to ramp up oil production, according to the firm.

The facility was constructed in 34 months after a letter of intent was signed in June 2010, which SBM said was in line with expectations and meets local content requirements for Brazilian FPSOs. It will operate under a 20-year charter under contract on the Lula Nordeste development in Brazil's pre-salt area.

The Lula field is located in block BM-S-11 in the Santos basin at approximately 185 miles offshore and 6,890 feet water depth. FPSO Cidade de Paraty is a new "Generation 3" FPSO and has installed topside facilities with a weight of around 14,000 tons to process 120,000 barrels of oil per day (bopd), associated gas treatment for 177 million cubic feet per day with compression and carbon dioxide removal and a water injection facility for 150,000 bopd.

The unit is owned and operated by a consortium of affiliated companies of SBM Offshore, QGOG, Nippon Yusen Kabushiki Kaisha, and ITOCHU Corporation.

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