A Joint Venture company part-owned by SBM Offshore has sealed a 20-year charter and operation deal worth US $3.5 billion in total for two Floating Production, Storage and Offloading (FPSO) vessels destined for Brazil.

The floating production specialist confirmed that contracts had been executed with BM-S-11 subsidiary Tupi BV on 12 July for the charter and operation of the FPSOs Cidade de Maricà and Cidade de Saquarema. Both are destined for the giant deepwater Lula field. Pre-salt block BM-S-11 is under concession to a consortium comprised of state-owned Brazilian major Petrobras (65%), the UK’s BG E&P Brasil Ltda. (25%), and Petrogal Brasil S.A. (10%).

The floaters will be owned and operated by the JV entity, which is owned by affiliated companies of SBM Offshore, Mitsubishi Corporation, Nippon Yusen Kabushiki Kaisha, and Queiroz Galvão Óleo e Gás S.A. SBM’s shareholding in the JV is 56%.

Planned delivery for the two new FPSOs is expected respectively by end 2015 and early 2016.

SBM said it would be in charge of the construction of the two FPSOs, which will be direct copies of the blueprint for the FPSO Cidade de Ilhabela, which is scheduled to launch next year. In addition, Cidade de Maricà and Cidade de Saquarema will also benefit from the technological expertise and experience that the company acquired during the successful completion of the FPSO Cidade de Paraty – the first of four pre-salt FPSOs to start production offshore Brazil.

The Letter of Intent for the contract was signed on 22 March 2013.

Bruno Chabas, CEO of SBM Offshore, added: “It is a sign of the commitment of both Petrobras and SBM to successfully fast-track this project. The FPSO teams – comprised of our most experienced personnel – have ramped up in record time since reception of the LOI, and we are pleased to proceed with the official green light to full execution of the project.”