SBM wins Brazil FPSO contract

SBM Offshore in Netherland has recently signed a contract with Shell on behalf of themselves and their partners Petrobras and ONGC for the lease and operation of an FPSO for the development of the BC-10 field offshore Brazil. The FPSO, based on the conversion of a VLCC hull from the company inventory, will have the capacity to process 100,000 barrels of oil and inject up to 75,000 barrels of water per day back into the reservoir. The unit, equipped with turbines able to generate 60 MW of electrical power for operating the facilities, will be installed in a water depth of 1,780 meters.

It is the intention of SBM to execute the contract in a joint venture with Malaysia International Shipping Corporation Berhad (MISC). Discussions between the two parties are in progress. The initial firm commitment of Shell under the contract is for a period of fifteen years, commencing in late 2008 / early 2009. There are provisions for further extensions up to five years.