Sembcorp Marine's subsidiary Jurong Shipyard in Singapore has won a $696m contract from Oogtk Libra to convert Navion Norvegia shuttle tanker into a floating, production, storage and offloading (FPSO) vessel.
Oogtk Libra is a 50:50 joint venture of Odebrecht Oil & Gas and Teekay Offshore.
Jurong Shipyard offshore division general manager William Gu said: "The conversion work will be done at our Sembmarine Integrated Yard at Tuas, which will soon commence work on its first FPSO conversion project."
Jurong will undertake detailed engineering, installation and integration of topside modules, installation of external turret and power generation, upgrade of accommodation, and piping and electrical cabling works.
The FPSO will be capable of producing 50,000 barrels of oil and four million m³ of natural gas a day.
The vessel will be chartered to Petrobras to operate in the Libra field in the ultra-deepwater section of Brazil's Santos Basin. The 12-year charter contract will commence in late 2016.
The conversion process is expected to be completed in the third quarter of 2016.
In July, another subsidiary of Sembcorp Marine, Sembawang Shipyard, received a $600m worth FPSO conversion contract from Saipem, France.
The contract included the conversion of two FPSOs for the Kaombo project in Offshore Angola.
Image: Teekay Offshore's shuttle tanker Navion Scandia. Photo: courtesy of Teekay Offshore Partners L P.