Home Energy Mitsui & Co., Ltd., Mitsui O.S.K. Lines, Ltd. and Marubeni Corporation to Participate in Ultra-Deepwater FPSO Chartering Project for Iracema Norte Area of Brazilian Offshore Pre-Salt Oil Field

Mitsui & Co., Ltd., Mitsui O.S.K. Lines, Ltd. and Marubeni Corporation to Participate in Ultra-Deepwater FPSO Chartering Project for Iracema Norte Area of Brazilian Offshore Pre-Salt Oil Field

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MOLMODEC, Inc. (“MODEC, ” head office:  Chuo-ku, Tokyo; president: Toshiro Miyazaki), Mitsui & Co., Ltd. (“Mitsui, ” head office: Chiyoda-ku, Tokyo; president: Masami Iijima), Mitsui O.S.K. Lines,   Ltd. (“MOL, ”  head office:  Minato-ku,   Tokyo; president: Koichi  Muto) and Marubeni Corporation (“Marubeni, ” head office: Chiyoda-ku, Tokyo;  president: Teruo Asada) have agreed that Mitsui, MOL and Marubeni will invest in  a long-term charter business (“Project”) operated by MODEC for the purpose of  providing a floating production, storage, and offloading system (“the FPSO, ”) for use in the Iracema Norte area of a pre-salt oil field off the coast of  Brazil. The above 4 companies (“Companies”) have entered into definitive  agreements today.

This Project is subsequent to the long-term charter business for the  purpose of providing an FPSO for the use in the Iracema Sul area (*) in which  the Companies invested through Cernambi Sul MV24 B.V. For this Project, Mitsui,   MOL and Marubeni will invest in Cernambi Norte MV26 B.V. (“MV26”), a Dutch  company established by MODEC. MV26 has signed a long-term chartering agreement with Tupi  B.V., a Dutch company owned by Petrobras Netherlands B.V. (65%), BG Overseas  Holding Ltd. (25%), and Galp Sinopec Brazil Services B.V. (10%). The FPSO will  be chartered to Tupi B.V. for 20 years under this chartering agreement signed in  February 2013.

Construction of the FPSO will involve the conversion of a VLCC  (very  large crude oil  carrier), which will be renamed “FPSO Cidade de ITAGUAÍ MV26” upon its  completion. It will be deployed to the Iracema Norte area of the BM-S-11 block  off the coast of Brazil in the fourth quarter of 2015.  The area is part of a deepwater oil field located approximately 300 km  south of Rio de Janeiro, Brazil. The oil is contained in the pre-salt layer  approximately 5, 000  m beneath the seabed.

MODEC and Mitsui have already provided  three FPSOs for pre-salt oil fields, and this will be their fourth pre-salt  related FPSO chartering project. It is the third project of its type for MOL and  the second for Marubeni.

The Schahin Group, the joint bidder with  MODEC for this Project as the local partner in Brazil, plans to invest up to 15%  in MV26 by the commencement of the FPSO charter. 

(*) Iracema Sul area was changed its  name from Cernambi Sul area which was described in the news statement released  by the Companies on March 22, 2012.

Outline of  FPSO

Oil processing       capacity 150, 000 barrels per       day
Gas processing       capacity 280 million cubic feet per       day
Oil storage capacity       1, 600, 000 barrels      
Mooring type       Spread mooring (at a depth of       2, 240 meters)

 

Controlling stake of  MV26

Before the investment by the       Schahin Group

After the investment by the       Schahin Group

MODEC,        Inc.

29.4%

25.0%

Mitsui & Co., Ltd.      

32.4%

27.5%

Mitsui O.S.K. Lines, Ltd.      

20.6%

17.5%

Marubeni Corporation      

17.6%

15.0%

Schahin       Group

15.0%

Schahin will have a 15% stake at most in  MV26. If under 15%, the ratio of the other shareholders will be increased on a  pro-rata basis.

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