SBM Offshore Signs 26 Year FPSO Deal with Petrobras

SBM Offshore has announced that it has signed contracts with Petróleo Brasileiro S.A. (Petrobras) for the 26.25 year lease and operation of the FPSO Almirante Tamandaré.

The FPSO will be deployed at the Búzios field in the Santos Basin approximately 110 miles offshore Rio de Janeiro in Brazil. SBM Offshore, which noted that it is progressing with the design and construction of the vessel using its Fast4Ward program, noted that the delivery of the FPSO is expected in the second half of 2024.

Back in February this year, SBM Offshore revealed that it had signed a letter of intent with Petróleo Petrobras for a 26.25 year lease and operation contract for the FPSO. In a company statement at the time, SBM Offshore outlined that, under the contract, it is responsible for the engineering, procurement, construction, installation, and operation of the vessel.

Almirante Tamandaré will be the largest oil producing unit operating offshore Brazil and one of the largest in the world, according to SBM Offshore, which noted that the FPSO will have a daily processing capacity of 225,000 barrels of oil and 12 million cubic meters of gas. The FPSO will also have a water injection capacity of 250,000 barrels per day and a minimum storage capacity of 1.4 million barrels of crude oil, SBM Offshore highlighted.

SBM Offshore’s main activities are the design, supply, installation, operation, and life extension of floating production solutions for the offshore energy industry over the full lifecycle, the company’s website notes. Last month, the business announced that it had completed the project financing of the Prosperity FPSO for a total of $1.05 billion. The Prosperity FPSO project is part of the Payara development offshore Guyana.

Petrobras is a Brazilian company with over 49,000 employees. It describes itself as one of the largest producers of oil and gas in the world, and is primarily engaged in exploration and production, refining, energy generation and trading.

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