Subsea 7 has signed a $1bn contract with Petrobras for the development of the pre-salt deepwater Guara and Lula north-east areas in the Santos Basin, offshore Brazil.

The areas are in water depths of 2,200m in blocks BM-S-9 and BM-S-11 for which Petrobras is the operator.

Subsea 7 will provide the engineering, procurement, installation and pre-commissioning of four decoupled riser systems.

The risers feature four 1,900t submerged buoys to be installed 250m below sea level.

Installation will also include 27 steel catenary risers of 3.9km and associated pipeline end terminations.

Engineering and project management work will begin at the Subsea 7 offices in Rio de Janeiro, Brazil.

The firm will carry out the fabrication of the rigid pipelines at the pipeline fabrication spoolbase at Paranagua, Parana.

Offshore installation will begin in the second half of 2012.