SBM confirms LOI for Guará Norte FPSO charter

Offshore staff

MONACO – An SBM Offshore affiliate and Queiroz Galvão Óleo e Gás have received two letters Of intent (LOIs) to supply an FPSO for Petrobras’ Guará Norte development off Brazil.

One is from GUARA BV, and the other from the BM-S-9 consortium, comprising Petrobras and its partners BG E&P Brasil and Repsol Sinopec Brasil.

The LOIs call for a 20-year charter and operation of the vessel in block BM-S-9. It will operate in 2,300 m (7,546 ft) of water on the presalt Guará Norte field in the Santos basin, in 300 km (186 mi) offshore.

The FPSO’s topsides will provide facilities to process 150,000 b/d of production fluids, associated gas treatment at up to 6MM cu m/d (212 MMcf/d) with compression and carbon dioxide removal, hydrogen sulfide removal, and water injection at up to 180,000 bpd. It should be delivered within 35 months from LOI.

It will likely be owned and operated by a consortium in which SBM Offshore will have a shareholding of not less than 49.5% and not more than 62.25%. Non-discounted total revenues payable to the consortium, excluding escalation and bonus, amounts to around $4.5 billion.

08/11/2011



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