SBM to Charter FPSO for Petrobras

SBM announced that one of its Affiliates and Queiroz Galvão Óleo e Gás S.A. (QGOG), have received a Letter Of Pre-commitment (LOP) from Petrobras Netherlands, Petroleo Brasileiro S.A. – Petrobras as Operator of the Consortium BM-S-11, established by companies Petrobras (65%), BG E&P do Brasil 25%), and PETROGAL BRASIL LTDA (10%) for the charter and operation of an FPSO for the pre-salt area, offshore Brazil.

The agreement covers the early phase of the project and allows SBM Offshore and QGOG to commence engineering and procurement work on the project. Petrobras expects to advise on the award of a full letter of intent for the project within one month when further project information will be provided. The charter and operation contracts are expected to be executed towards the end of the second quarter of 2010.