Ultratec to Invest US$7.8mn in Shipyard Expansion to Build FPSO

Brazilian engineering company Ultratec will invest 17mn reais (US$7.8mn) to expand its shipyard in Rio de Janeiro state in preparation for the construction of the P-53 floating production, storage and offloading vessel (FPSO), the Rio de Janeiro state government's naval industry and energy department said in a statement.

Federal energy company Petrobras (NYSE: PBR) will lease the FPSO from special purposed company CDC.

Ultratec is part of the Quip consortium that CDC has hired to carry out the P-53's topside assembly.

Ultratec will expand the shipyard's area to 78,000 square meters from 45,000 square meters and increase the length of the shipyard to 50m from 30m and its depth to 7m from 6m, the statement said.

Part of the P-53 topside will be built in Rio de Janeiro and part in Rio Grande do Sul state. The hull will come from Singapore, where shipbuilder Keppel is converting an existing ship into the FPSO.

Overall construction is scheduled to wrap up in September 2007, when the FPSO will be towed to the deepwater Marlim Leste field in the Campos basin.

The P-53 will have the capacity to produce 180,000 barrels of oil and 6 million cubic meters of natural gas a day.

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