Toyo Engineering and SOG Oleo e Gas signed a MOU
On May, 2012, Toyo Engineering Corporation (Toyo) and SOG – Óleo e Gás S.A. (SOG), a leading engineering company in Brazil, signed a Memorandum of Understanding (MOU) to create the new Brazilian joint venture company TS Participações e Investimentos S.A..
The signature ceremony was officially supported by the witness of Mr. Edano, the Minister of METI, and Mr. Pimentel, Minister of Development, Industry and Foreign Trade of Brazil.
The signing of this MOU is the first case where a Japanese engineering company establishes a joint venture with a local company in Brazil.
This first co-operation in the engineering activity is positively perceived by Japan and Brazil to expand the trade and capital expenditure between the two countries and support the development of the local oil and gas and petrochemical industry.
From this new joint venture established on a 50/50 share basis, Toyo and SOG Oleo e Gas will hold tow subsidiaries called:
– TOYO-SETAL Engenharia Ltda. to develop engineering, procurement, and construction (EPC) of onshore business
– Estaleiros do Brasil Ltda. engaging in EPC of offshore business including FPSO.
Both Toyo and SOG Oleo e Gas subsidiaries are established and will start their business as a new company from June.
In the future, the company will develop business in other South American and West African countries
Toyo and SOG will contribute to the growth of the Brazilian economy through this joint venture and exert efforts to expand business opportunities in the oil and gas and petrochemical industry Brazil.
Toyo awarded FPSO Topsides for Brazil
This MOU comes only one month after Toyo being awarded, jointly with Modec, for Petrobras FPSO Topsides.
This is the sixth FPSO project that Toyo will build for Modec and the 29th project in Brazil.
The contract is related to Cernambi Sul field of BM-S-11 block,300 km offshore Rio de Janeiro, Brazil
Cernambi Sul field is under concession to Tupi B.V. with shared interests:
– Petrobras 65%
– BG 25%
– Galp 10%
The Floating Production Storage and Offloading (FPSO) Topsides units will have capacity to process:
– 150,000 b/d crude oil
– 280 million cf/d natural gas
While Toyo and SOG Oleo e Gas joint venture shall be operational in June 2012 to take Brazil engineering Market Leadership, Petrobras, Modec and Toyo are scheduling completion fo this sixth FPSO in late 2014.