NYK Confirms Participation in Two FPSO
Businesses for Petrobras in Brazil

July 17, 2013

Through an international joint venture (JV) company, NYK concluded a 20-year contract with the BM-S-11 consortium (65% Petrobras SA, the operator; 25% BG Group (BG E&P Brasil Ltda); and 10% GALP Energia (Petrogal Brasil Ltda)) on July 12 for the charter and operation of two additional floating production, storage, and offloading (FPSO) units.* Oil production on the first FPSO unit, Cidade de Paraty, began on June 6. These two additional units will be deployed in the Lula Alto and Lula Central areas** of the Lula pre-salt oil field.***

For this project, NYK (48.72%) and the Mitsubishi Corporation (51.28%; head office: Tokyo; president and CEO: Ken Kobayashi) established an international JV company to own and operate FPSOs together with SBM Offshore N.V. (Netherlands) and Queiroz Galvão Óleo e Gás S.A (Brazil).

The two additional FPSO units, FPSO Cidade de Maricá and FPSO Cidade de Saquarema, are being constructed by making alterations to two very large crude-oil carriers (VLCCs). The hull and marine systems of these two VLCCs are currently being upgraded in Guangzhou, China, and will later be integrated with their topside modules in Brazil. Onboard oil production will begin between the final quarter of 2015 and the first quarter of 2016.

Through its participation in these FPSO projects, NYK will continue its efforts to expand and develop its business through the utilization of the company’s specialized skills in the offshore oil and gas industry.

Information on FPSO Cidade de Maricá and FPSO Cidade de Saquarema

Oil processing capacity: 150,000 barrels of oil per day
Gas processing capacity: 6 million cubic meters per day
Oil storage capacity: 1.6 million barrels
Water injection capabilities: 35,000 cubic meters per day
Mooring Type: Spread mooring

*An FPSO unit is a ship-shaped offshore installation that produces crude oil by separating solids, water, and gases from liquid drawn from reservoirs beneath the seabed and storing it until it is offloaded to shuttle tankers or export tankers.

**The Lula Alto and Lula Central areas are located in block BM-S-11 in the Santos basin at approximately 300 kilometers offshore and in waters 2,300 meters deep.

***Pre-salt refers to the oil layer under a salt layer, about 5,000 meters beneath the seabed.

NYK Line, press release