[Brazil] FPSO Capixaba

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SBM Secures LOI for Capixaba FPSO on Petrobras' Cachalote Field
Monday, June 02, 2008

SBM Offshore has secured a letter of intent from Petrobras for a lease and operate contract of the company's existing FPSO Capixaba for a period of 12 years at the Cachalote field offshore Brazil. The FPSO Capixaba will be disconnected from its current location at the Golfinho field offshore Brazil and after transfer to a shipyard, the FPSO will be modified and upgraded for the new application and will then transfer back to Brazil for offshore hook up, installation and operation on the Cachalote field.

The execution schedule extends for a period of eight months, from planned disconnection at the Golfinho field in June 2009, to first oil on the Cachalote field in February 2010. The relocation and upgrade works will require a significant additional capex investment in the unit resulting in an amended lease contract with a new lease rate which will be payable from date of start-up on the Cachalote field.

The order represents an additional portfolio value of approximately 1 billion US Dollars for the total of the relocation fee and the non-discounted total of the fixed lease rates payable over the 12 year lease period, after deduction of the remaining years' revenues from February 2010 under the original FPSO Capixaba lease.

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Keppel Shipyard Ltd. has delivered FPSO Capixaba, with a conversion contract value of over $55.4 million, to Single Buoy Moorings (SBM), a member of the SBM Offshore NV Group.

Keppel said the 13-month fasttrack project was the sixth FPSO conversion project it has undertaken for SMB since 2000.

The work scope on the formerStena Congress included installation and integration of topside modules; the fabrication and installation of the internal turret, flare tower, piperack, and helideck; and installation of a hose reel at the stern for offloading to export vessels.

Capixaba, designed to produce 100,000 b/d of oil with a storage capacity of 2 MMbbl, will be moored in 1,350 m of water in the Golfinho light oilfield in the Espirito Santo basin offshore Brazil.

Capixaba is be leased by SBM to Petrobras SA and is expected to produce first oil in 2Q 2006.

Three other SBM FPSO facilities, which were converted by Keppel, are already leased to Petrobras.

Espadarte, Brasil, and Marlim Sul, together with Capixaba will be producing 390,000 b/d.