Brazil’s Petrobras has awarded a $1.2bn contract to Mitsui Engineering & Shipbuilding and Schahin Engenharia for a floating oil platform in the Guara oilfield, off the coast of Rio de Janeiro.

The FPSO will be built by Modec, a unit of Mitsui, by remodelling a used tanker and will be leased for 20 years.

The vessel, which will be used to extract oil from the Guara field, will be delivered to Petrobras in the last quarter of 2012, reports Bloomberg.

The Guara field is expected to hold as much as two billion barrels of oil.