Aframax in Jurong Shipyard undergoing conversion to an FPSO for the Tiro and Sidon fields offshore Brazil

Teekay has signed a new fixed-rate contract with Petrobras to provide a floating production storage and offloading (FPSO) unit for the Tiro and Sidon fields located in the Santos Basin offshore Brazil.

An existing Aframax tanker is currently under conversion at the Sembcorp Marine’s Jurong Shipyard in Singapore.

The new converted FPSO unit, to be named the Petrojarl Cidade de Itajai, is scheduled to deliver in the second quarter of 2012 when it will commence operations under a nine-year firm period time-charter contract to Petrobras, with six additional one-year extension options.