Seadrill Ltd. and SapuraKencana Petroleum Berhad’s jointly owned entity, Sapura Navegação Marítima S.A., Brazil (SNM) has been awarded a contract worth up to US $2.7 billion in potential revenue by Petrobras to charter and operate three Pipe Laying Support Vessels (PLSVs).

The contract is for a period of eight years, with an extension option for an additional eight years, and is expected to start by the second quarter of 2016. The companies added that the total revenue potential for the contract is expected to be $2.7 billion.

The three vessels will be built in Holland at the IHC Caland shipyard, and will have the same specifications as SNM’s existing orders with the yard. Total newbuild cost will be approximately US $800 million.

John Fredricksen, Chairman of Seadrill Ltd. said: “Seadrill, along with SapuraKencana, continues to support the strategic investment in SNM. The additional vessels bring the total PLSV fleet in the region to six units, and builds capacity in order to insure that Petrobras has best in class support for their operations.”