China-based BOMESC Offshore Engineering's wholly owned subsidiary Tianjin BOMESC has signed a contract with SBM Offshore for the design, procurement and construction of topside modules for a floating production, storage and offloading (FPSO) destined for South America.
Tianjin BOMESC Offshore Engineering will build the modules at the company's Lingang Offshore Heavy Industry Construction Base, with completion scheduled for the second half of 2028.
The contract, worth between $240 million and $312 million (1.6 billion yuan and 2.1 billion yuan), which took effect on September 24, comprises a fixed-price portion and a variable component based on the currently estimated workload. Its final value will depend on the actual work completed and confirmed by the parties.
The modules will be delivered on an FOB basis aboard the vessel at BOMESC's wharf, with payments tied to project progress and contractual milestones.
BOMESC has previously worked with SBM Offshore on FPSO projects, including FPSO Sepetiba, for which the hull construction, topside module fabrication and final integration were completed in China.
The contract includes liquidated damages for delays capped at 10% of its value, while BOMESC will provide a project performance guarantee for Tianjin BOMESC.
BOMESC expects the contract to support its workload and contribute to its results in the current and future years, although the specific financial impact cannot yet be determined.
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