Sevan scraps asset sale, progresses GoM FPSO design
Sevan Marine says it is progressing its cylindrical hull design for use in the US Gulf of Mexico with steel catenary risers.
ARENDAL, Norway – Sevan Marine says it is progressing its cylindrical hull design for use in the US Gulf of Mexico with steel catenary risers (SCR).
A model test was carried out at the Offshore Technology Research Centre at Texas A&M University in May, with further testing and development being planned for late 2016 and 2017.
Sevan Marine hopes to obtain approval to use its unique cylindrical design with SCRs as a non-disconnectable FPSO with the ability to retain cargo during a hurricane. This, the company claims, would be a first in the GoM.
It met with numerous oil companies, lease providers, suppliers, partners, and clients in the US, China, Australia, and Europe during the quarter. It also held a user forum in Arendal, Norway, to bring together current operators and partners of existing Sevan Marine designed units. The company said it received “very positive” feedback, saying the oil majors view it “as a credible and proven alternative to other floating installation designs.”
The design is said to have improved motion characteristics, lower operating costs, high deck load capacity, large storage space, and lower construction cost compared with alternatives when a turret is needed.
This increased market awareness has led to the concept being selected for small feasibility studies for projects in the Barents Sea and Caribbean.
The company aims to progress this heightened visibility as part of its ongoing strategy, rather than an asset sale it had previously considered.Sevan also revealed that it had received expressions of interest from companies regarding the purchase of certain assets following its announcement last April that it had appointed Pareto Securities to explore “potential strategic options.”
However, Sevan found these offers below the current market value of the company, and said that it will instead focus its efforts on independently developing, marketing, and supporting the execution of projects based on its unique cylindrical hull design. It will also seek to work with partners to further promote and develop the concept.
It also provided an update on its current and prospective projects. Sevan said it expects to continue to provide engineering support for aUK-based FPSO prospect through 2016 and into 2017. Also, a continuation of the FLNG feasibility study for a specific FLNG field development with a US oil major was agreed and work started during the quarter which the agreed phase expected to run through the end of the year.
The company also continued to provide engineering and site support services for the Goliat, Logitel Offshore, and Dana Western Isles projects. Work on the Logitel Offshore project will come to an end in 3Q 2016 as the construction contracts with the yard in China have been canceled.