Netherlands-based SBM Offshore and Petrobras, Brazil, have signed a Letter of Intent for the lease and operate contract of SBM Offshore's 'FPSO Espadarte' for a period of 18 years on the Baleia Azul field offshore Brazil.
The 'FPSO Espadarte' will be disconnected from its current location at the Espadarte field offshore Brazil and after transfer to a shipyard, the FPSO will be modified and upgraded for the new project and will then transfer back to Brazil for offshore hook up, installation and operation on the Baleia Azul field.
The planned disconnection of the FPSO from the Espadarte field is in April 2011 and first oil at the Baleia Azul field is planned in July 2012.