SBM Offshore has signed a letter of intent with Petroleo Brasileiro ( Petrobras ) for a 22.5-year lease and operate contract for the FPSO Alexandre de Gusmao. The Floating Production, Storage and Offloading unit will be deployed at the Mero oilfield in Brazil's Santos Basin, approximately 160 kilometres from Arraial do Cabo in the state of Rio de Janeiro.

The Libra block, where the Mero field is located, is under a production sharing agreement with a consortium comprising Petrobras ( 40% ), Shell Brasil ( 20% ), Total Energies ( 20% ), China National Oil and Gas Exploration and Development Company ( CNODC, 10% ), and China National Offshore Oil Corporation ( CNOOC, 10% ). Brazilian state-owned company Pre-Sal Petroleo SA acts as manager of the production sharing contract.

SBM Offshore will design and construct the FPSO Alexandre de Gusmao using the company’s new build multi-purpose floater ( MPF ) hull combined with several standardized topside modules. SBM Offshore’s fifth MPF hull has been allocated to this project. Completion of the FPSO is expected in 2024.

SBM Offshore is a listed holding company headquartered in Amsterdam. Its main activities are the design, supply, installation, operation and the life extension of floating production solutions for the offshore energy industry over the full lifecycle. The company is a market leader in leased floating production systems, with multiple units currently in operation.

The FPSO will be designed to produce 180,000 barrels of oil per day and treat 12 million standard cubic metres of gas per day. The unit will also have a water injection capacity of 250,000 barrels per day and a minimum storage capacity of 1.4 million barrels of crude oil. The unit will be spread-moored in a water depth of approximately 1,900 metres.

This is the second major project award this year for SBM Offshore from its key client Petrobras. In February it signed a letter of intent for the 26.25 years' lease and operation of FPSO Almirante Tamandare. It will be deployed at the Búzios field in the Santos Basin, some 180 kilometers offshore Rio de Janeiro. Delivery of the FPSO is expected in the second half of 2024.