Sapura Navegação Marítima (SNM), a jointly owned unit of Seadrill and SapuraKencana Petroleum, has won a $2.7bn contract from Petrobras to build three pipe laying support vessels (PLSVs).

Under the contract, SNM will build, charter, and operate the three PLSVs in Brazil.

SNM will build the vessels in Holland with IHC Caland, while the total newbuild cost will be about $800m.

Seadrill chairman John Fredriksen said the company along with SapuraKencana continues to support the strategic investment in SNM.

"The additional vessels bring the total PLSV fleet in the region to 6 units and builds capacity in order to insure that Petrobras has best in class support for their operations," Fredriksen added.

"This long term agreement demonstrates SNM’s strong relationship with Petrobras and their industry leading operational performance."

The eight year contract has an extension option for an additional eight years and is expected to commence by the second quarter of 2016.