SBM Offshore and Solstad line up newbuild deep/shallow-water construction vessel

SBM Offshore and Solstad Offshore have jointly entered a Letter of Intent with a shipyard for a newbuild, multi-purpose deepwater installation and construction vessel.

This would be delivered during the first half of 2029. The vessel will support installation of offshore infrastructure, including FPSOs.

Under SBM/Solstad’s existing partnership, the two companies have owned and jointly operated the construction support vessel Normand Installer since 2006.

The new, next-generation vessel on order has an optimized design, SBM Offshore said, allowing it to install infrastructure in shallow and deepwater settings.

In addition, the company sees it providing competitive advantages through improved delivery reliability and integration of more offshore installation work scopes. This, it claims, should reduce the execution risk for clients and improve the predictability of SBM Offshore’s schedules and costs.

Under the initial 14-year charter agreement, SBM Offshore would secure a minimum of 270 days per year for the vessel, with the potential to extend the charter period within each year, and by up to 11 additional years, Solstad reported. 

When not in service for SBM Offshore, the joint venture could charter the vessel to third parties.

In addition, the partners have extended the existing frame agreement, giving SBM Offshore continued access to the Normand Installer through 2034.

SBM Offshore will have a 49.9% interest in the new joint venture company and Solstad Offshore will hold 50.1%. The latter will act as ship manager, with SBM Offshore chartering the vessel for its own installation projects.