IHC Caland Wins $500 Million Petrobras Contract

IHC Caland N.V. announces a new large FPSO lease and operate contract obtained from Petrobras. The Letter of Intent has been received by its wholly owned subsidiary Single Buoy Moorings Inc. (SBM), for a complex unit to be installed on Marlin South field in Campos Basin, Brazil; it authorizes commencement of the work to meet a first oil objective mid-2004 and is based on a 94 months lease period commitment.

The FPSO will be built from a converted VLCC tanker (270,000 dwt) which SBM had purchased in advance for that purpose; it will be similar in size and complexity to both previous FPSO's already delivered and operating on Espadarte and Roncador fields. The unit will feature a large weathervaning turret and will be capable to process 100,000 bopd of crude oil production and 81 mmscfd of gas compression. The produced gas will be exported through Campos Basin pipelines. The process plant will include gas treatment and compression, water injection and sulphate removal facilities. The total portfolio value of this contract is in excess of US$ 500,000,000.