Petrobras to charter FPSO from Japanese group

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Apr. 1 -- Mitsui & Co., Mitsubishi Corp., and Mitsui OSK Lines Ltd. have agreed to invest in a project of Modec Inc. to charter a floating production, storage, and offloading vessel to Brazil’s Petroleo Brasileiro SA (Petrobras).

The Japanese firms said they have finalized their capital investment in Dutch company Tupi Pilot MV22 BV, the subsidiary established by Modec, to undertake the project.

MV22 has in turn procured the financing for the project from the Japan Bank for International Cooperation, as well as private Japanese banks, and it has signed the loan agreement.

MODEC has been converting an existing very large crude carrier into an FPSO under the ownership of MV22 for charter to Petrobras.

The FPSO is expected to be engaged in oil production for 15 years—with an option for annual extension—at the presalt area off Brazil. Operations are expected to begin in the Tupi area in this year’s fourth quarter.

The FPSO has an oil-processing capacity of 100,000 b/d, a gas processing capacity of 150 MMcfd, and an oil storage capacity of 1.6 million bbl.

Modec holds a 42.5% stake in the venture. Other interest holders are Mitsui 27.5%, Mitsubishi 25%, and Mitsui OSK 5%.

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