SBM Offshore to Participate in Auction for Five Brazilian FPSOs

Illustration; Image Courtesy: SBM Offshore

Dutch marine energy group SBM Offshore confirmed it would participate in a sealed bid competitive process related to five Brazilian floating production storage and offloading (FPSO) units which it operates.

The announcement follows the public sale notice by Serviços de Petróleo Constellation (Constellation), formerly Queiroz Galvão Óleo e Gás S.A., of its equity ownership in the lease and operating companies related to five Brazilian FPSOs.

The auction consists of the minority stake held by affiliated companies of Constellation in the entities related to the following five FPSOs — Cidade de Paraty (20%), Cidade de Ilhabela (12.75%), Cidade de Marica (5%), Cidade de Saquarema (5%) and Capixaba (20%).

SBM Offshore is already the majority shareholder of the related entities and operator of these FPSOs.

As explained, SBM Offshore’s move comes in an effort to enable “an efficient continuation of the sales process for all parties involved in case”.

The company has reached an agreement in principle with Constellation with respect to the terms of the contemplated transaction. This agreement remains conditional upon the outcome of the competitive auction process, according to SBM Offshore.