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  • 2007 February 28 06:23

    Norsk Hydro charters FPSO vessel from Moller-Maersk for Brazil's Peregrino field

    Norsk Hydro ASA said its Peregrino partnership in Brazil has entered into an agreement to charter a floating production storage and offloading (FPSO) vessel from Denmark's AP Moller-Maersk.
    The partnership is a 50 pct venture between Hydro and US company Anadarko Petroleum (nyse: APC - news - people ), and is focused on the Peregrino field offshore Brazil.
    Under the terms of the deal, Hydro said the FPSO will be built by Maersk, and will be operated and maintained by one of its Brazilian subsidiaries.
    No financial details were disclosed, but Hydro said it expects the vessel to be ready for installation on the field in early 2010.
    The agreement is subject to the owners' final sanctioning of the project, and the relevant authorities' approval of the field development plan.
    The Peregrino field is located about 85 kilometres offshore Brazil, and has estimated recoverable resources of between 300-600 mln barrels of heavy oil.
    Under the development plan, the field is to be developed with an FPSO and two drilling platforms.
    Production start up is planned for 2010, Hydro added.
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