Petrobras Extends Teekay Contract for Piranema Spirit

The Piranema Spirit FPSO. Source: Teekay Offshore

Teekay Offshore has agreed to a 3-year contract extension with Petrobras for the Piranema Spirit, an FPSO located in the Piranema field offshore Brazil. The agreement, which includes termination rights for Petrobras with 10 months’ advance notice, was signed in January but takes effect this month.

Piranema Spirit is a cylindrical FPSO designed and previously owned by Sevan Marine. It has an oil production capacity of 25,000 BOPD and a storage capacity of 250,000 bbl. The vessel has been in operation since 2008. Sevan Marine sold it to Teekay subsidiary Piranema LLC for $165 million in 2011. In October 2018, Teekay Offshore entered a settlement agreement with Petrobras over a dispute relating to the FPSO’s charter. Under that settlement, Teekay agreed to reduce the charter rate for the FPSO totaling approximately $11 million. That amount was credited to Petrobras in 4Q 2018.

The Piranema field is located in water depths ranging from 656 to 6,561 ft in the Sergipe/Alagoas Basin off the coast of Aracaju. Discovered in 2001, it produced an average of 4,254 B/D of light oil and 1,573 m3/D of gas. Petrobras announced last March its intentions to sell its stake in Piranema and Piranema Sul; progress in those efforts is currently unknown.


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