Brazilian energy giant Petrobras will build a floating production, storage and offloading vessel by remodelling a used oil tanker, and lease it for 20 years.
Petrobras has signed Mitsui Engineering & Shipbuilding and Schahin Engenharia on a 100 billion yen (923 million) contract for the floating oil platform for use in the Guara oil fields off Rio de Janeiro.
The vessel, to be used to extract oil from Guara, will be delivered in Q4 2012.
Petrobras plans to double output to 5.38 million barrels of oil a day by 2020, mainly from deepwater fields in Brazil. Guara, located near Tupi, may hold as much as 2 billion barrels of oil.
A floating production, storage and offloading vessel is installed above or close to a field to process the oil.