SBM Offshore Inks FPSO Sepetiba Contracts

Wednesday, December 11, 2019

SBM Offshore announced on Wednesday that it has firmed up contracts with Brazil’s Petróleo Brasileiro S.A. (Petrobras) for the 22.5-years lease and operation of a floating production, storage and offloading unit (FPSO) to be deployed at the Mero field in the Santos Basin offshore Brazil.

FPSO Sepetiba, formerly known as Mero 2, will be built under SBM’s Fast4Ward program, which incorporates a newbuild, multipurpose hull combined with several standardized topsides modules, and is expected to be delivered in 2022, SBM said.

The FPSO will link to 16 wells and will have the capacity to process up to 180,000 barrels of oil per day (bpd), with water injection capacity of 250,000 barrels per day, associated gas treatment capacity of 12 million standard cubic meters per day and a minimum storage capacity of 1.4 million barrels of crude oil. It will be spread moored in approximately 2,000 meters water depth. Production startup is planned for 2022.

The Libra block, where the Mero field is located, is under Production Sharing Agreement to a Consortium comprised of Petrobras, as the operator, with 40%, Shell with 20%, Total with 20%, CNODC with 10% and CNOOC Limited with 10% interest. The consortium also has the participation of the state-owned company Pré-Sal Petróleo SA (PPSA) as manager of the Production Sharing Contract.

The project partners announced final investment decision (FID) for the second phase of the Mero development in June. SBM announced a binding letter of intent (LOI) for the project at that time.

Following the launch of FPSO Sepetiba, it is expected that another two FPSOs of the same capacity will be added, subject to partner approvals, according to Petrobras. The Brazilian state-controlled oil company said in June that all four units will be deployed in the northwestern part of the Libra block (Mero field), as the central and southeast panels are under exploration until 2020.

Categories: Contracts FPSO South America Floating Production

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