OSX Brasil, Mendes Junior to install oil processing equipment

15 August 2012 (Last Updated August 15th, 2012 18:30)

Shipbuilder OSX Brasil and construction firm Mendes Junior have won a $900m contract from Petrobras to install oil processing equipment on two floating production storage and offloading (FPSO) units.

Shipbuilder OSX Brasil and construction firm Mendes Junior have won a $900m contract from Petrobras to install oil processing equipment on two floating production storage and offloading (FPSO) units.

Under the deal, OSX and Mendes will install the equipment on the decks of the P-67 and P-70 FPSOs.

OSX and Mendes own 49% and 51% stakes in the contract, respectively; the deal also includes an option for installation of the equipment on a third FPSO, either P-72 or P-73.

Engineering works are scheduled to start immediately, while the construction of modules under Package I for the two vessels is slated for February 2013.

The deal covers complete design, supply, construction and assembly of eight production units in Package I.

Both companies will carry out the integration work at OSX’s shipyard, currently under construction at the Port of Acu north of Rio de Janeiro.

The partners have agreed to deliver the first FPSO by September 2016, and the second vessel by August 2017.

The optional contract to integrate the third FPSO is expected to take place in about 18 months from contract signature by option of Tupi, a Dutch shipping subsidiary of Petrobras.

Upon delivery, Petrobras will use the FPSOs to produce oil from ultra-deepwater oil fields known as the pre-salt layer at Campos Basin near Brazil’s south-east coast.

Each FPSO will have the capacity to process up to 150,000 boe per day and compress six million cubic metres of gas.