Malaysian company Yinson Holdings and Japan's Modec have each signed a letter of intent to supply separate floating production, storage and offloading vessels for the Petrobras-operated Marlim field off Brazil.
The orders confirm an earlier report from Upstream that the pair were in line to land floater contracts at the Marlim field.
Yinson confirmed Wednesday it had signed the letter of intent with Petrobras to supply the Marlim-2 FPSO, as well as a second letter of intent to provide operation and maintenance service during the roughly 25-year charter period.
The company has estimated the aggregate value of the contracts to be equivalent to about $5.4 billion, adding the Marlim-2 FPSO was expected to start operations in the first quarter of 2023.
In a later announcement, Modec also confirmed it had been awarded a letter of intent for the supply, charter and operations of the Marlim-1 FPSO, however it did not state a value for the contract.
First oil from the Modec supplied FPSO is currently scheduled for 2022 and will also see the vessel chartered for a period of about 25 years.
Modec also revealed the floater it would supply would be capable of processing 80,000 barrels of oil per day, 7 million cubic metres of gas per day, 390,000 barrels of water injection per day and have the capacity to store at least 1 million barrels of oil.
Modec confirmed it would be responsible for the engineering, procurement, construction, mobilisation, chartering and operations of the FPSO, including topsides processing equipment as well as hull and marine systems.
“Brazil is a key country in our business strategy and is about to enter a very promising period for the energy segment,” Modec chief executive Yuji Kozai said.
“It is our wish to continue to support the development of the local oil and gas industry, either through mature fields like the Marlim revitalisation project as well as green field projects in the pre-salt, amongst others."
Wednesday’s announcement confirmed earlier reports by Upstream that Yinson and Modec were placed to supply the two floaters which are designed to replace seven older production platforms currently installed in the field, including the P-18, P-19, P-20 and P-26 semi-submersible production platforms, and the P-33, P-35 and P-37 FPSOs.
The FPSO's form part of a revitalisation project at the Marlim field after Petrobras secured a contract extension to continue producing from the field until 2052.
The contract extension will allow the Brazilian company to properly produce from the Brava find, a pre-salt accumulation discovered a few years ago at greater depths inside the Marlim ring-fence.