An affiliate of SBM Offshore and drilling contracting company Queiroz Galvao Oleo e Gas has secured two letters of intent (LoI) to charter and operate an FPSO for the Guara Norte development, offshore Brazil.

The LoIs were received from Guara-BV and the BM-S-9 Consortium for the FPSO, which will be delivered within 35 months.

Under the 20 year charter contract, the FPSO unit will be owned and operated by a consortium in which SBM Offshore will have a majority shareholding.

A total of $4.5bn in non-discounted revenue will be payable under this contract to the consortium.

The FPSO will include topside facilities to process 150,000bpd of production fluids, associated gas treatment for six million square metres per day with compression and carbon dioxide removal.

It will also feature hydrogen sulphide removal and a water injection facility for 180,000bpd.

Petrobras owns a 45% stake in the BM-S-9 Consortium, BG E&P Brasil has 30% and Repsol Sinopec Brasil has 20%.