Dutch FPSO operator SBM Offshore has entered into contracts with Petrobras for the lease and operation of FPSO Sepetiba for a period of 22.5 years.
The contracts follow the two parties signing a letter of intent for the deal in June.
The FPSO, which is capable of producing 180,000 barrels of oil per day, will be deployed at the Mero field in the Santos Basin offshore Brazil,. Delivery of the FPSO is expected in 2022.
The Libra block, where the Mero field is located, is under a production sharing agreement to a consortium comprised of Petrobras (40%), Shell (20%), Total (20%), CNODC (10%) and CNOOC (10%).
In April, SBM Offshore ordered up to four FPSO hulls at China Merchants Heavy Industry.