SINGAPORE (Oct 13): Sembcorp Marine’s wholly-owned Jurong Shipyard has secured a US$696-million ($870 million) contract to convert a shuttle tanker into a floating, production, storage and offloading (FPSO) vessel for OOGTK Libra GmbH & Co, a joint venture between Brazil’s Odebrecht Oil & Gas and Teekay Offshore.

When completed in 3Q2016, the vessel will have the capacity to produce 50,000 barrels of oil a day and four million cubic metres of natural gas daily, SembMarine said in a statement today.

The FPSO is expected to be chartered for 12 years to Brazilian oil giant Petrobras, which will deploy the vessel in the Libra field in the ultra-deepwater section of Brazil’s Santos Basin.

Petrobras had nominated Teekay Offshore, which provides marine transportation, oil production and storage services, and OOGTK Libra as the lead commercial bidder for the Libra project, a 1,550 sq km oil block that can potentially yield up to 1.4 million barrels of oil daily, according to SembMarine’s statement.

The FPSO project brings the total value of SembMarine’s contracts secured this year to $3.7 billion.