MOL agrees Petrobras charter investment
MITSUI OSK Lines and a group of Japanese companies have agreed to invest in chartering a floating production, storage and offloading vessel to Brazil"s national oil company Petrobras.
Project finance amounting to up to $800m will be provided by the Japan Bank of International Co-operation and private Japanese banks.
MOL will join forces with Modec, Mitsui, and Mitsubishi to supply an FPSO to Petrobras for use at its giant deepwater pre-salt oil field under development off the Brazilian coast.
The vessel is expected to be engaged in oil production for 15 years with an annual extension option. Operations will commence in fourth quarter of 2010.
The FPSO will have an oil processing capacity of 100,000 barrels of oil per day and a gas processing capacity of 150m cu ft per day. The vessel will have an oil storage capacity of 1.6m barrels.
Mitsui, Mitsubishi and MOL have completed capital investment in the Dutch company Tupi Pilot MV22, a subsidiary established by Modec to undertake the project. Modec holds a 42.5% stake, Mitsui has 27.5% and Mitsubishi a 25% stake. MOL holds the remaining 5%.
MODEC has been converting an existing very large crude carrier into an FPSO under the ownership of MV22 for charter to Petrobras.
In a statement, MOL said vast oil reserves lie off Brazil beneath a layer of rock and salt at a depth of between 5,000 m and 6,000 m.
?As the world"s first attempt to develop oil deposited beneath a layer of rock and salt, the oil industry shows strong interest on the progress of this project,? the statement said.