Dutch FPSO leasing specialist SBM Offshore has ordered its latest Fast4Ward multi-purpose floater hull as it marked a new record level order book at $31.1 billion.
The latest Fast4Ward floating production unit (FPU) is expected to be delivered in 2024, the firm said yesterday in its half year earnings. It also said it could have near-zero emissions FPSO available to the market by 2025.
"Our market outlook for new FPSOs remains positive as the world requires energy which is not only sustainable, but also affordable and reliable," said Bruno Chabas, CEO of SBM Offshore. "This is what the company is delivering through its competitive Fast4Ward FPSOs which are also characterized by low emissions intensity. We have therefore ordered our seventh Fast4Ward MPF hull."
The order has been reported to be with Chinese yard Shanghai Waigaoqiao Shipbuilding (SWS) and China Shipbuilding Trading Company.
With the award of the FPSO ONE GUYANA project - SBM's largest FPSO to date - SBM Offshore said its order book had increased to a new record level of US$31.1 billion.
Furthermore, the firm expects to deliver around US$9 billion net cash flow from our lease and operate backlog during the period which gives unique visibility on cash flow for the next 28 years," said Chabas.
SBM also set new 2030 intermediate greenhouse gas (GHG) related targets, which it said would create a pathway to net-zero by 2050.
It said that by 2030, it would target net-zero scope 1 and 2 emissions, a 50% reduction of scope 3 GHG intensity and zero routine flaring in its fleet. "We are also seeing good progress under our emissionZERO program with the aim to have a near-zero emissions FPSO available to the market by 2025," said Chabas.
SBM added that its 25MW floating offshore wind project in the south of France was progressing towards delivery in 2023.
In July, SBM Offshore said it had completed the US$1.75 billion project financing for the FPSO One Guyana. It will be deployed at ExxonMobil's Yellowtail development, offshore Guyana.
SBM Offshore's Fast4Ward program includes a new build, multi-purpose floater hull combined with several standardized topsides modules. Under the Fast4Ward program, SBM Offshore usually orders an FPSO hull without a firm contract in hand, so that, when a contract is secured, the FPSO delivery time is shorter.
Data from IHS Markit
The lease and operate division includes the Liza Unity FPSO, operating for ExxonMobil in Guyana on the prolific Stabroek Block, which successfully ramped up production, the FPSO Liza Destiny, also operating in Guyana for ExxonMobil, on which the s compression system was successfully upgraded, and the FPSO Cidade de Anchieta, which is progressing towards a safe restart.
SBM Offshore introduced its Fast4Ward concept for standardised FPSOs in May 2016, says IHS Markit. In August 2017, SBM announced that it was moving ahead with the Fast4Ward project and placed an order for a newbuild multi-purpose hull with Shanghai Waigaoqiao Shipbuilding (SWS) in China on speculation.