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SBM Offshore N.V. and Chiyoda Corporation Awarded FEED Study for Petrobras Floating LNG Production Facility

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SBM Offshore, working in collaboration with Chiyoda Corporation, have been awarded a contract by Petrobras for a Front End Engineering and Design (FEED) study for a Floating LNG Production Facility; also commonly referred to as FLNG or LNG FPSO. The study has started and is planned for completion by the end of 2010. This project is being conducted by the Joint Venture ("JV") formed by Petrobras, BG, Repsol and Galp Energia for the pre-salt reservoirs of the Santos Basin offshore Brazil.

The JV is studying the FLNG concept as one means to handle the associated gas that will be produced by the series of oil and gas producing FPSOs that are planned to be put in operation for the development of the pre-salt fields in the Santos Basin in the coming years. The FLNG FEED study will be developed considering a water depth of approximately 2,200 meters and a capability to produce around 2.7 million tonnes per annum (mtpa) of LNG and 1mtpa of LPG.

The environmental conditions considered for the FLNG FEED will require the use of tandem LNG offloading for which SBM Offshore will be able to offer its specialised and proprietary technology.

For this project, SBM Offshore will be working as the leading company in a consortium with Chiyoda from Japan.

The award of this FEED contract is an important step for SBM Offshore in developing its FLNG product and its strong ambition to become a leading player in the upcoming FLNG business.

The portfolio value of the FEED contract is approximately US$ 40 million.

Published 21/12/09

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