SBM Offshore, QGOG win $4.5B, 20-year lease on Guara North FPSO

By Phaedra Friend Troy

The Guara BV and BM-S-9 Consortium have awarded SBM Offshore and Queiroz Galvao Oleo e Gas (QGOG) two letters of intent for a 20-year charter and operation of a Floating Production Storage and Offloading vessel (FPSO) for the development of the pre-salt Guara North oil field offshore Brazil.

Located on Block BM-S-9 in the ultra-deepwaters of the Santos Basin, the Guara Norte oil field is situated about 300 kilometers offshore and in 2,300 meters of water. 

The Guara Norte FPSO will be capable of processing up to 150,000 barrels of oil a day and 6 million cubic meters a day of natural gas, with compression and carbon dioxide removal. The FPSO will also include sulphide removal and water injection capacity of 180,000 barrels a day.

The FPSO is scheduled for deliver in 35 months, or July 2014. The 20-year charter is worth $4.5 billion, excluding escalation and bonus.

Petrobras (NYSE:PBR) serves as the operator of BM-S-9 with 45 percent interest. The consortium also includes BG Group with 30 percent and Repsol Sinopec Brazil with 25 percent.

In April 2011, Petrobras confirmed the high productivity of the Guara Norte oil and gas field via a formation test that flowed at a rate of 6,000 barrels of oil a day at a constrained rate.

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