Double commitment in China for Dutch offshore specialist
SBM signs for FPSO hull no.2 in China as keel is laid down for hull no.1 of Fast4Ward project
Coinciding with the keel laying ceremony for its first Fast4Ward™ FPSO hull, SBM Offshore signs the contract for a second hull with SWS shipyard in Shanghai, China.
Although there is no concrete EPC contract for this second hull, the Dutchcompany views the continuing positive industry outlook as a good indicator, hence the move to sign with SWS for a second floater. Parallel projects for Fast4Ward™ are now in motion at the yard.
“The timing of our Fast4Ward™ strategy fits in perfectly with the market upturn. We have been preparing for this exact scenario since 2014 and today, we see tangible evidence of how Fast4Ward™ matches the industry’s need for cost-conscious, standardized solutions, which de-risk and accelerate projects. Major players are starting to invest in projects and are seriously considering our game-changing solution, as we saw with our July announcement of an FPSO FEED for the Liza development, based on our Fast4Ward™ program” stated SBM Offshore CEO Bruno Chabas.
The contract signature ceremony took place at SWS shipyard with representatives from SBM Offshore, including Bruno Chabas (CEO), Bernard van Leggelo (China Managing Director) and Srdjan Cenic (General Manager China), as well as Lei Fanpei, Chairman of board of CSSC and Wang Qi, Chairman of board of SWS.
The keel-laying ceremony marks a major step in the engineering, procurement and construction (EPC) phase for the new build vessel and follows the first steel cut milestone in March.
The FPSO is designed to produce 220,000 barrels of oil per day and will have associated gas treatment capacity of 400 million cubic feet per day, as well as water injection capacity of 250,000 barrels per day. The Fast4WardTM concept capitalizes on the Company’s unique experience in project delivery (34 FPSOs to date) combined with over 300 years’ cumulative experience in operating its lease fleet.
In May 2016 at OTC Houston, SBM Offshore launched its standardized FPSO concept Fast4Ward™ whose design is called ‘Generation 4’, the next step in the company’s series of Generation FPSOs. Fast4Ward™ offers a comprehensive solution for lower cost, faster schedule on the critical path, predictability and standardization and can enhance project Net Present Value (NPV) and ensure that project economics are met.
In August 2017 SBM Offshore announced it was moving forward with its Fast4Ward™ project (on speculation) with a contract for first new-build, multi-purpose hull with China Shipbuilding Trading Company, Ltd. and the shipyard of Shanghai Waigaoqiao Shipbuilding and Offshore Co., Ltd.
In July 2018, SBM Offshore announced that it had been awarded contracts for ExxonMobil’s second Liza FPSO, based on its Fast4Ward™ Program; contracts are to perform Front End Engineering and Design (FEED) on an FPSO for the Liza development offshore Guyana. Following FEED, and subject to requisite government approvals and project sanction, SBM Offshore will construct and install, then lease and operate the FPSO for a period of up to2 years.