Mitsui Engineering & Shipbuilding Co. and Schahin Engenharia SA won a 100 billion yen ($1.2 billion) order from Petroleo Brasileiro SA to build a floating oil platform for use in the Guara oil fields off Rio de Janeiro.
Mitsui Engineering unit Modec Inc., the second-largest maker of floating oil platform, will build a floating production, storage and offloading vessel by remodeling a used oil tanker, and lease it for 20 years, said Masahiro Takaoka, a spokesman for Tokyo-based Mitsui Engineering.
The vessel, to be used to extract oil from Guara, will be delivered in the fourth quarter of 2012. Brazil’s state- controlled oil company, also known as Petrobras, plans to spend $224 billion in the next five years developing offshore fields including Tupi, the largest find in the Americas since Mexico’s Cantarell in 1976.
“It’s positive that Modec can get involved in an emerging market where high growth is expected,” Satoshi Yuzaki, an analyst at Takagi Securities, said in Tokyo. “We will monitor how much the company will benefit from the joint order.”
Petrobras plans to double output to 5.38 million barrels of oil a day by 2020, mainly from deepwater fields in Brazil. Guara, located near Tupi, may hold as much as 2 billion barrels of oil. A floating production, storage and offloading vessel is installed above or close to a field to process the oil.
Modec, 50.1 percent owned by Mitsui Engineering and 14.99 percent by Mitsui & Co., rose 3.2 percent to 1,181 yen at the 3 p.m. close on the Tokyo Stock Exchange, after falling as much as 3.8 percent earlier today. The stock has fallen 34 percent this year.
Mitsui Engineering unit Modec Inc., the second-largest maker of floating oil platform, will build a floating production, storage and offloading vessel by remodeling a used oil tanker, and lease it for 20 years, said Masahiro Takaoka, a spokesman for Tokyo-based Mitsui Engineering.
The vessel, to be used to extract oil from Guara, will be delivered in the fourth quarter of 2012. Brazil’s state- controlled oil company, also known as Petrobras, plans to spend $224 billion in the next five years developing offshore fields including Tupi, the largest find in the Americas since Mexico’s Cantarell in 1976.
“It’s positive that Modec can get involved in an emerging market where high growth is expected,” Satoshi Yuzaki, an analyst at Takagi Securities, said in Tokyo. “We will monitor how much the company will benefit from the joint order.”
Petrobras plans to double output to 5.38 million barrels of oil a day by 2020, mainly from deepwater fields in Brazil. Guara, located near Tupi, may hold as much as 2 billion barrels of oil. A floating production, storage and offloading vessel is installed above or close to a field to process the oil.
Modec, 50.1 percent owned by Mitsui Engineering and 14.99 percent by Mitsui & Co., rose 3.2 percent to 1,181 yen at the 3 p.m. close on the Tokyo Stock Exchange, after falling as much as 3.8 percent earlier today. The stock has fallen 34 percent this year.
