Singapore - Sembcorp Marine announced on Monday that its wholly-owned subsidiary Jurong Shipyard Pte Ltd has secured a US$696 million (S$877.23 million) vessel conversion contract from OOGTK Libra GmbH & Co KG, a joint venture between Brazil's Odebrecht Oil & Gas and Teekay Offshore.

The contract involves the conversion of the Navion Norvegia shuttle tanker into a floating, production, storage and offloading (FPSO) vessel, Semcorp said in a statement to the Singapore Exchange.

Scheduled for completion in the third quarter of 2016, the FPSO will have the capacity to produce 50,000 barrels of oil per day and 4 million cubic metres of natural gas per day, and is expected to be chartered to Petrobras for work on the Libra field in the ultra-deepwater section of Brazil's Santos Basin.