Sembcorp Marine’s Jurong Shipyard has secured a S$351m (US$268m) contract from Teekay Petrojarl Production, a subsidiary of Norway-based Teekay, to convert an Aframax tanker into an FPSO.

The contract involves the engineering, installation and integration of 16 topside modules as well as the installation of spread mooring and power generation systems, piping and electrical works.

The shipyard will convert the MT Arc II into an FPSO vessel, which will be renamed Petrojarl Cidade de Itajai.

The modified vessel is scheduled for delivery in the first quarter of 2012, according to