South Korea’s Hyundai Heavy Industries has signed an initial agreement with Chinese yard CIMC Raffles to fabricate the hull and living quarters for the P-78 floating production, storage and offloading vessel destined for the Petrobras-operated Buzios field offshore Brazil.

Offshore market sources said main contractor Hyundai signed a memorandum of understand with CIMC Raffles after the Yantai-based yard offered what they described as the most competitive price to fabricate the floater’s hull.

COSCO Shipping Heavy Industry and China Merchants Heavy Industry were also in the bidding for the hull prize but, in line with an earlier