SBM Offshore N.V. (SBFFY.PK) a provider of floating production solutions to the offshore energy industry, Tuesday said it received a letter of intent for the twenty-year charter and operation of two FPSOs (floating production storage and offloading) from BM-S-11 subsidiary Tupi BV. The FPSOs are expected to be owned and operated by a joint venture company owned by SBM Offshore with other partners including Queiroz Galvão Óleo e Gás S.A. with a total contract value of $3.5 billion. The company anticipates the contract to be finalized by the second quarter of 2013.
SBM Offshore said it will be in charge of the construction of the two FPSOs with planned delivery expected respectively by end 2015 and early 2016. Further, the FPSOs, to be deployed at the Lula field in the pre-salt province offshore Brazil, will be executed with significant local Brazilian content, with substantial parts of the project management, procurement and engineering services carried out in Brazil, added the company in a statement.
BM-S-11 block is under concession to a consortium comprised of PETROBRAS, 65 percent, BG E&P Brasil Ltda., 25 percent, and Petrogal Brasil S.A., 10 percent.
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