Petrobras, operator of the BM-SEAL-11 consortium, of which Bharat Petroleum (NSE:BPCL, BOM:500547) is a part, has signed a contract for the construction of a floating production storage and offloading (FPSO) unit in Brazil, according to a Tuesday filing to the Indian stock exchanges.
The FPSO will be built by SBM Offshore for the SEAP-I project in Brazil, which includes the development of oil and gas discovered in BM-SEAL-11 and BM-SEAL-10 concessions. The FPSO will have an installed capacity to process 120,000 barrels of oil/condensate per day and 10 million m³ of gas per day.
Bharat Petroleum, through its subsidiaries, holds a 65.4% stake in IBV Brasil Petroleo, which in turn, holds 40% participating interest in the BM Seal 11 concession. IBV's total investment in the project is estimated at around $2.8 billion, subject to Government of India approvals.
Under the contract, SBM Offshore will design, build, and operate the FPSO for an initial period of six and a half years, through a separate operation and maintenance contract.