Sevan Marine eyes FLNG opportunities

Wednesday, August 20, 2014

Cylindrical floating vessel firm Sevan Marine says it has a positive outlook with multiple leads for its technology, including FLNG technology and potential deals for floating production units on Premier Oil’s North Sea Bream field and Shell’s Penguins, also in the North Sea.  

The firm is also hopeful its technology will be opened to new lines of business in the floating accommodation unit (FAU) segment, following an agreement with Teekay, last month, and which saw Teekay exercise the first of six accommodation unit options earlier in August.

Image: The Sevan Hummingbird FPSO

Teekay’s option takes Teekay’s current building program to three units, not including an MOU signed by Teekay with UK explorer Xcite for a bridge-linked FSO solution on Xcite’s North Sea Bentley heavy oil field based on the Sevan design. 

Sevan Marine CEO Carl Lieungh said: “Sevan’s position as a provider of floater technology and topside engineering expertise continuous to expand through the agreements with Teekay and Technip. Sevan is developing according to our strategy and is now well positioned to continue to grow our market opportunities and succeed with the prospects we are working on.”

Sevan Marine said: “The outlook is generally positive for the FPSO/FSO market segment, and increased focus on cost effective solutions should be an advantage for Sevan. The drilling segment is expected to remain challenging in the short and medium term. However, the co-operation with Sevan Drilling / NADL / Seadrill is expected to generate new opportunities in the longer term

“Teekay’s entry into the FAU market is positive for Sevan and is likely to generate increased activity in the short and medium term. Expectations of paid studies for further development of the FLNG concept in the medium term.”

It added that a deal to sell 49% of its KANFA business to Technip Norge, agreed in April, was also expected to open a larger market for KANFA within the topside and process industry.

Expanding on the general market outlook, Sevan Marine said: “FLNG is probably one of the fastest growing markets and Sevan has positioned itself within this segment by developing a concept based on proprietary technology. It has been well received by several potential clients and it is expected that paid studies will be carried out in the near/medium term to develop the concept further.

“Teekay’s acquisition of Logitel Offshore represents a new business stream for Sevan. In addition to the two ongoing vessels, Teekay in August called off a third high end accommodation unit with the yard, thus confirming Teekay’s intent to build a fleet of FAUs over the coming years. 

“The drilling market is expected to be challenging for the next years, however, the cooperation with Seadrill (incl. Sevan Drilling and North Atlantic Drilling) on developing next generation drilling units (Mark II) as well as Arctic drilling units, will result in paid studies.

“KANFA is presently working on tenders in South East Asia, and Technip is expected to generate new leads for KANFA in the North Sea and other parts of the world. KANFA Aragon, which was not part of the transaction with Technip, is primarily focusing on the gas processing and FLNG markets, both of which represent positive prospects for KANFA Aragon.”

Categories: FPSO Europe Floating Production FLNG Drilling

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