MONACO -- SBM Offshore has agreed a 21-year charter and operations contract for the FPSO Cidade de Paraty for the Lula Nordeste development offshore Brazil.
Agreements have been signed with the BM-S-11 consortium, comprising operator Petrobras, BG Group, and GALP Energia. SBM Offshore and Queiroz Galvão Óleo e Gás (QGOG) had been awarded a Letter of Intent in May 2010.
A joint venture of SBM Offshore, QGOG, Nippon Yusen Kabushiki Kaisha, and ITOCHU will own and operate the vessel.
Lula Nordeste is in block BM-S-11 in the Santos basin, 265 km (165 mi) offshore and in 2,100 m (6,890 ft) water depth. The FPSO’s topside facilities will be able to process 150,000 b/d of production fluids, also providing associated gas treatment for 5 MMcm/d (176.5 MMcf/d), compression, carbon dioxide removal, and water injection at 150,000 b/d.
SBM Offshore and its JV partners have secured a $ 1-billion loan from a syndicate of banks to finance construction of the vessel. The loan will be repaid over 10 years starting at first oil.
Lula Nordeste partners agree on FPSO charter
SBM Offshore has agreed a 21-year charter and operations contract for the FPSO Cidade de Paraty for the Lula Nordeste development offshore Brazil.