Petrobras Awards Contract for Buzios FPSO

Petrobras (NYSE: PBR) has awarded SBM Offshore (OTCMKTS: SBFFF) a letter of intent (LOI) for a 26.25-year lease and operate contract for a floating production, storage, and offloading (FPSO) vessel to be deployed at the Búzios field in the Santos Basin offshore Brazil, SBM reported last week.

Under the contract, SBM will oversee engineering, procurement, construction, installation, and operation of the FPSO Almirante Tamandaré, the LOI recipient pointed out in a written statement emailed to Rigzone. The firm noted that it will design and construct the FPSO with its “Fast4Ward” program, integrating a new-build Multi-Purpose Floater (MPF) hull and several standardized topsides modules.

SBM stated the FPSO Almirante Tamandaré will be capable of producing 225,000 barrels of oil per day and 12 million cubic meters of gas per day, making it the largest oil-producing unit offshore Brazil. The FPSO will also boast 250,000 barrels per day of water injection capacity and a minimum storage capacity of 1.4 million barrels of crude oil, the LOI recipient noted.

SBM Offshore CEO Bruno Chabas said the vessel will be the sixth FPSO development in Búzios.

“This award for one of the largest production units in the world demonstrates the trust placed in our ability to reliably deliver large-scale FPSOs and the agreement again confirms the significant value we bring to our clients with our industry-leading Fast4Ward program,” remarked Chabas. “SBM Offshore teams look forward to starting the execution phase in order to continue to deliver value to one of our key clients Petrobras.”

The FPSO will be spread-moored in approximately 6,562 feet (2,000 meters) of water about 112 miles (180 kilometers) offshore Rio de Janeiro, SBM stated. The firm projects FPSO delivery in the second half of 2024.

To contact the author, email mveazey@rigzone.com.