SBM Offshore NV signed contracts with Brazilian state-owned oil major Petróleo Brasileiro SA - Petrobras to lease and operate the Sepetiba floating production storage and offloading, or FPSO, vessel for 22.5 years for an undisclosed amount.

The FPSO, which is expected to be delivered in 2022, will be deployed in the Mero field, located in the Santos Basin offshore Brazil, according to a Dec. 11 release from SBM Offshore. The contracts follow a binding letter of intent signed on June 11.

Petrobras operates the Libra block, where the Mero field is located, with a 40% stake. Other partners in the production-sharing agreement include Royal Dutch Shell PLC, Total SA, China National Petroleum Corp. unit China National Oil and Gas Exploration and Development Co. Ltd. and CNOOC Ltd. with interests of 20%, 20%, 10% and 10%, respectively. Brazilian state-owned company Empresa Brasileira de Administração de Petróleo e Gas Natural SA - Pré-Sal Pet manages the production-sharing contract.