The Company has signed a contract with Shell on behalf of themselves and their partners Petrobras and ONGC for the lease and operation of an FPSO for the development of the BC-10 field offshore Brazil.
The FPSO, based on the conversion of a VLCC hull from the Company inventory, will have the capacity to process 100,000 barrels of oil and inject up to 75,000 barrels of water per day back into the reservoir. The unit, equipped with turbines able to generate 60 MW of electrical power for operating the facilities, will be installed in a water depth of 1,780 meters.
It is the intention of SBM to execute the contract in Joint Venture with Malaysia International Shipping Corporation Berhad (MISC). Discussions between the two parties are in progress. MISC and SBM are also partners in the FPSO Brasil, under lease with Petrobras on the Roncador field, and in the Kikeh FPSO for Murphy, currently under construction in Malaysia.
The initial firm commitment of Shell under the contract is for a period of fifteen years, commencing in late 2008 / early 2009. There are provisions for further extensions up to five years.
In the course of October the Company secured several contracts for offshore contracting services ensuring full occupation of the installation vessels 'Dynamic Installer' and 'Normand Installer' until the middle of 2007.
The cumulative portfolio value of these orders is in excess of 850 million US Dollars. For the FPSO lease this figure includes only the SBM share of the lease revenues.
The Dutch public company SBM Offshore N.V. is the holding company of a group of international, marine technology orientated companies. Its business is to serve on a global basis the offshore oil and gas industry by supplying engineered products, vessels and systems, and offshore oil and gas production services.
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