Aye Caramba: SBM Offshore Awarded $1.25B Contract Offshore Brazil

SBM Offshore reported that the formal contract has been signed with Petrobras for the turnkey supply of the P-57 FPSO to be installed on Jubarte field offshore Brazil.

This contract represents a portfolio value of U.S. $1.25 billion inclusive of three years of operating services. It represents a major step in SBM's business growth as this unit is one size up from previously supplied or leased FPSOs. The facility will have the capacity to produce 180,000 barrels per day of oil with total gas compression of 71 MMscfd.

The FPSO is likely to be converted in Singapore using one of the SBM VLCC tankers from its inventory -- the 'Accord.' Integration of the topsides is planned to be performed in Brazil in accordance with new local content requirements.

The delivery of the unit in Brazil, ready for installation, is planned for end of 2010.