SBM Offshore Plans to Order Another FPSO Hull

This Will Eventually Be SBM Offshore’s Third Order for Fast4Ward Series Units, Based on Increased Confidence in the Market

SBM Offshore, the world’s largest FPSO supplier, is ready to expand its fleet as it plans to order another Fast4Ward FPSO hull soon. The Fast4Ward is the company’s program aimed at standardizing the construction and delivery process of the FPSO, thereby reducing costs and speeding up the market timeline by up to 12 months.

The company has already ordered two units from China’s SWS shipyard. The first hull was ordered in 2017 and the second in November 2018, both speculatively and without a firm contract at the time of order, signaling positive industry outlook. The first unit is expected to be deployed in Exxon’s Liza 2 project in Guyana, subject to Exxon’s final investment decision.

Now, SBM Offshore is considering ordering a third Fast4Ward hull, based on the increased confidence in the market.

In a statement on Thursday, SBM Offshore said that, due to early demand, it has advanced negotiations to start work on its third multi-purpose hull.

“These negotiations are expected to be concluded in the first quarter of 2019”, said SBM Offshore.

SBM Offshore’s CEO, Bruno Chabas, stated: “Our Fast4WardTM concept is being recognized by our clients. The planned order for a third Fast4WardTM hull reflects our confidence in the market recovery and in our business model. With the prospects of increased demand, the level of opportunity and potential we see for our solutions looks promising.”

Hibernation Period in Brazil

SBM Offshore said in November 2018 that, although Brazil is its primary market, with several opportunities being actively pursued, the waiting time for construction activity opportunities, combined with uncertainty regarding the evolution of local content regulations, led to the decision to keep Brasa inactive for at least two years.