MONACO – Shell (NYSE:RDS.A) has issued a letter of interim award to SBM Offshore (AMS:SBMO) for lease and operation of an FPSO for the Fram field development in the UK North Sea.
SBM will start engineering and procurement of long lead items to ensure timely completion of the project, which remains subject to a final investment decision.
In March, Shell and SBM signed a five-year enterprise framework agreement, extendable by a further five years, for supply of small and mid-sized FPSOs globally on a lease and operate basis. If approved, Fram will be the first project developed under the terms of the agreement.
The hull will be created from a converted Aframax tanker, and will incorporate an internal turret permanent mooring system. Crude will be offloaded to shuttle tankers and the gas exported to the UK mainland via the existing Fulmar pipeline.