SBM Offshore revealed that it has inked a deal for its Fast4Ward standardization program, signing a contract in June for the first newbuild hull with China Shipbuilding Trading Co. (CSTC) and the Shanghai Waigaoqiao Shipbuilding (SWS) shipyard.
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The Cidade de Saquarema. Image from SBM Offshore. |
The project is currently in the engineering, procurement, and construction (EPC) phase.
Capital commitments are phased over time, with planned yard expenditure of about US$20 million in 2017 and some US$55 million in 2018, subject to delivery of agreed milestones, the company said.
“In an industry that more than ever needs performance, SBM Offshore brings competitive edge with its track record of reliable delivery and increased productivity through product standardization and faster times to market,” SBM Offshore CEO Bruno Chabas said in the company’s Q2 2017 report.
“Having delivered 34 FPSOs (floating production and storage offloading units) plus 300 years cumulative experience in operating its lease fleet, SBM Offshore is capitalizing on this experience through its Fast4Ward program. SBM Offshore has now ordered its first standard newbuild, multi-purpose hull,” Chabas confirmed.
SBM Offshore says that Fast4Ward program delivers results is an optimized design with standard specifications which leads to lower cost, higher quality and productivity on a de-risked plan with reduced safety exposure. The program also accelerates first oil by up to 12 months.
According to SBM Offshore, Fast4Ward addressed industry issues including having oil developments in increasingly deeper water with harsher conditions, and requiring heavier installations on deck, despite space and weight constraints. Deepwater projects are required to be more efficient and reliable, faster, safer with lower project break-even prices.
The company has been developing Fast4Ward since 2014.
“The program capitalizes on what SBM Offshore has learned from its 118 turnkey product deliveries, including 34 increasingly complex deepwater FPSOs, as well as from its long history of operating one of the world’s largest FPSO fleets,” says SBM Offshore.
During the period, SBM announced that Shell exercised its right to buy the Turritella FPSO in a $1 billion deal.
“SBM Offshore produced solid results for the first half of 2017,” Chabas said. “With the three additional FPSOs ramping up, our fleet produced repeatedly more than 1 MMb/d, which represents more than 10% of global deepwater oil production. In today’s oil price environment, characterized by continued low prices, deepwater field developments need to build on the competitiveness gained.”
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