SBM Offshore is pleased to announce that FPSO Cidade de Saquarema is formally on hire as of July 8, 2016 after achieving first oil and the completion of a 72-hour continuous production test leading to Final Acceptance.

The vessel is installed in the Lula field (BM-S-11 contract) in the pre-salt province offshore Brazil. The FPSO will operate under a 20-year charter with Tupi BV as well as an operations contract with the BM-S-11 consortium. The BM-S-11 block is under concession to a consortium comprised of PETROBRAS (65%), BG E&P Brasil Ltda - a Royal Dutch Shell subsidiary (25%) and Petrogal Brasil S.A. (10%).

The FPSO is owned and operated by a Joint Venture owned by affiliated companies of SBM Offshore, Mitsubishi Corporation, Nippon Yusen Kabushiki Kaisha, and Queiroz Galvão Óleo e Gás S.A. in which SBM Offshore's shareholding is 56%.