SBM Offshore has executed a Letter of Intent (LOI) with OSX 2 Leasing BV, an indirect subsidiary of OSX Brasil S.A. and part of Eike Batista's EBX Group.

SBM says the LOI will permit it to start project activities, including early engineering and procurement up to $25 million relating to the future conversion, supply and installation of a floating production, storage and offloading vessel to OSX ("FPSO OSX-2"). The full EPCI contract for FPSO OSX-2 is expected to be executed within a month.

FPSO OSX-2 will be chartered by OSX to its customer OGX Petróleo e Gás Ltda. ("OGX"), also a company of the EBX Group, and will be deployed on oil fields in the Campos basin offshore Brazil. First oil is targeted by third quarter 2013.

March 30, 2011