Sembcorp Marine’s (Sembmarine’s) subsidiary Jurong Shipyard Pte Ltd. has secured a $696 million contract to convert a shuttle tanker into an FPSO vessel for OOGTK Libra GmbH & Co. KG, a joint venture between Brazil’s Odebrecht Oil & Gas and Teekay Offshore.

Sembmarine’s contract involves the conversion of the Navion Norvegia shuttle tanker to an FPSO unit that includes detailed engineering, installation and integration of topside modules, installation of external turret and power generation, accommodation upgrading as well as extensive piping and electrical cabling works.

Scheduled for completion in the third quarter of 2016, the FPSO vessel will have the capacity to produce 50,000 bbl/d of oil and 4 MMcm/d (141 MMcf/d) of natural gas and is expected to be chartered to Petrobras for work on the Libra Field in the ultradeepwater section of Brazil’s Santos Basin.

Operating as an early well-test unit, the FPSO unit will be on a 12-year charter once it begins its contract in late 2016.