SBM Offshore, partners win $3.5 billion Petrobras contract
AMSTERDAM (Reuters) - SBM Offshore (SBMO.AS) and its partners have won a $3.5 billion contract from Brazilian oil company Petrobras (PETR4.SA) to build two oil platforms, the Dutch maritime services firm said on Tuesday.
The order is the biggest-ever for SBM Offshore and is for so-called floating, production, storage and offloading platforms (FPSOs), its main area of business.
SBM Offshore settled a long-running dispute two weeks ago over a Norwegian project that involved the production of a so-called mobile offshore production unit (MOPU), and on which SBM had to write down $1.4 billion over three years.
It is planning a rights issue of 10 percent of its share capital to cope with the write down.
SBM Offshore and its partners, including Brazil's Queiroz Galvao Oil & Gas SA (QGOG.N), will work in a joint venture to deliver two FPSOs in 2015 and 2016, SBM Offshore said in a statement.
The joint venture will manage the two platforms for 20 years, and contract finalization is expected by the second quarter of 2013, SBM Offshore said.
"The two FPSO's represent the biggest contract ever awarded to us, underlining our unparalleled expertise and leading position in the market for large-scale tanker conversions to FPSOs," SBM Offshore Chief Executive Bruno Chabas said.
NEW YORK - U.S. stocks finished mostly higher on Friday, with the S&P 500 closing at a record after more jobs than expected were created in February and January's figure was revised higher. | Video
- U.S. small businesses borrowed more money in January than they did a year earlier, signaling continued growth in the economy despite a spate of cold weather that has been blamed for weakness in many other indicators of activity.
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.