Dutch constructor SBM Offshore said on June 11 it had signed a letter of intent with Brazil’s Petrobras to build and operate a new floating oil production, storage and offloading structure in the Mero field, off the coast of Rio de Janeiro.
SBM did not disclose terms. The structure is designed to produce 180,000 barrels of oil per day, and have a minimum storage capacity of 1.4 million barrels of crude oil, SBM said.
The contract is the first since SBM paid more than $200 million to settle charges it paid bribes before 2012 to secure contracts with Petrobras, which has been at the center of Brazil’s largest corruption scandal amid investigations into a political kickback scheme involving contractors.
SBM had been blocked from the Brazilian market, one of its largest, until a final settlement last year.
“The signing of this letter of intent demonstrates again that SBM Offshore has started a new era of growth,” Bruno Chabas, CEO, said.
“Not only does this award represent the company’s re-entry in Brazil, one of the most important markets for the company with one of our key customers, it also re-confirms the competitiveness of our products,” he said.
Recommended Reading
New Permian Math: Vital Energy and 42 Horseshoe Wells
2024-05-10 - Vital Energy anticipates making 42 double-long, horseshoe-shaped wells where straight lines would have made 84 wells. The estimated savings: $140 million.
Vår Selling Norne Assets to DNO
2024-05-08 - In exchange for Vår’s producing assets in the Norwegian Sea, DNO is paying $51 million and transferring to Vår its 22.6% interest in the Ringhorne East unit in the North Sea.
Crescent Energy: Bigger Uinta Frac Now Making 60% More Boe
2024-05-10 - Crescent Energy also reported companywide growth in D&C speeds, while well costs have declined 10%.
SLB OneSubsea JV to Kickstart North Sea Development
2024-05-07 - SLB OneSubsea, a joint venture including SLB and Subsea7, have been awarded a contract by OKEA that will develop the Bestla Project offshore Norway.