SBM maintaining FPSO project schedules despite COVID-19 impact

Feb. 23, 2023
SBM Offshore has issued an update on its newbuild activities in its latest results review.

Offshore staff

MONACO SBM Offshore has issued an update on its newbuild activities in its latest results review.

The company is constructing six FPSOs. Progress at the yards in China has been disrupted by the country’s COVID-19 lockdowns and the war in Ukraine, with logistical problems and inflation leading to rising costs.

Although China has now relaxed its COVID-19 measures, further impact is likely from the anticipated temporary increase of positive cases in the country. Project teams are working with client teams and contractors on ways of mitigating the impacts on project execution.

Below is the current status:

  • FPSO Sepetiba integration and commissioning activities are progressing, and first oil is targeted later in 2023.
  • FPSO Prosperity recently departed Singapore following integration of the topsides modules, riser and mooring structures, and onshore commissioning, and it is sailing to the Stabroek Block offshore Guyana, where SBM’s team will install the platform on the Payara Field. Prosperity is designed to produce up to 220,000 bbl/d of oil, with associated gas treatment capacity of 400 MMcf/d and water injection capacity of 250,000 b/d. It will be spread moored in 1,900 m of water and will be able to store 2 MMbbl of crude oil. Startup is expected later this year.
  • For the FPSO Almirante Tamandaré, the Fast4Ward MPF hull is nearing completion at the yard, topsides fabrication is progressing, and first oil is on track for 2024.
  • For FPSO Alexandre de Gusmão, fabrication continues of the topsides and Fast4Ward MPF hull, and first oil is expected in 2025.
  • FPSO ONE GUYANA topsides fabrication is advancing as planned, and first oil is expected at the end of 2025.

SBM Offshore has now received orders for seven Fast4Ward MPF hulls, with Exxon Mobil granted exclusivity on the seventh.

Late last year, the company secured a contract extension to June 2024 for the lease and operation of FPSO Saxi Batuque.

SBM Offshore’s investments in new tools include the deployment of an ERP system to improve data analytics and support increased efficiency of operations.

The company has opened a new center in Porto, Portugal, to centralize competencies and assist operations, especially for Guyana, Equatorial Guinea, Angola and Malaysia, and it is investing in new technology developments for the energy transition.

It is seeking to provide offloading terminal solutions for CO2 and to adapt existing terminal solutions for future fluids such as ammonia.