SBM Offshore
Efficiency Focus Sails SBM to Strong Performance
With a number of exciting builds underway, and a range of units in action around the world, SBM Offshore continues to secure its position as a leader in the global FPSO market. Focussing on efficiency with its Fast4ward® concept, especially for Brazil and Guyana, is yielding strong results.
Images © SBM Offshore
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The ocean was, is, and always will be world’s greatest ally in the battle against climate change. Producing 50% of the oxygen we need, absorbing 25% of the CO2 emissions we produce, and capturing 90% of the excess heat that come from these emissions, the oceans are the great balancers of the global ecosystem. But they also generate energy – wind, water, and tide have the power to fuel nations and lift communities out of poverty. They provide economic opportunity, and are key sources of food, entertainment, tourism, and mindfulness – Heraclitean Motion is peaceful and calming.
To harness the immense potential of the blue, expert knowledge is required. To navigate the waves and provide infrastructure that can help us access the world’s natural resources, experience and expertise is essential.
One of the world’s leaders in ocean work is SBM Offshore. The Dutch ocean goer has made clear its intentions to work on and with the seas to assist in the energy transition. “Supporting this increase in demand while supporting the energy transition is the major twofold challenge of this century. One that SBM Offshore is committed to meeting,” the company says.
“From today’s oil and gas to tomorrow’s wind and wave, SBM Offshore is the deep-water specialist. Our vision is to use our knowledge and experience to unlock the vast energy resource potential of our oceans and seas, in all its forms.”
HISTORIC KNOWLEDGE
For decades SBM has been learning how to work on the sea. Starting out with skills from general marine engineering and entering the mooring system industry for buoys, the technology was then developed for use on drill ships and eventually utilised on barges. By the 1980s, the company was a group of business with expertise across rigs and other offshore structures, servicing the booming oil and gas industries. By the end of 1990s, SBM had cemented its position as an industry leader, calling some of the world’s majors its key clients. Floating Production, Storage and Offloading (FPSO) vessels became the company’s key area of focus because of the unmatched ability to service challenging deepwater oil fields in remote locations. Engineering the complex infrastructure that sees oil and gas onboarded and stored safely, and then pumped out to a transport vessel is one of the most challenging concepts in the sector, but SBM has all the learnings required, and proof of its ability.
Today, the company is a leader in the industry and produces more oil (boepd) than any others with 15 FPSOs and one semi-submersible unit active around the world. SBM designs, supplies, installs, operates, and extends the life of FPSOs, focussing on new builds and large conversion projects. Current focus for the oil market is Brazil and Guyana, but SBM is also diversifying and looking to operate more in the renewable energy industry.
FAST4WARD®
In 2016, SBM heard the call of the industry and began development of the Fast4ward® concept – an idea that standardised FPSO design for smooth and understandable manufacture. Based on Group Technical Standards from 2003, the idea came about to help clients through a lower CAPEX requirement and a shorter cycle from yard to energy production. The supply chain becomes integrated, digitisation is encouraged, execution becomes flawless, and clients receive major benefits. To date, the Fast4ward® model has been a major success allowing production from 300 – 3000 meters, with a 30-year design life, increased deck space, and up to 2.3 million barrels of storage capacity.
Particularly relevant in Guyana, where SBM Offshore works closely with ExxonMobil, the Fast4ward® concept is being rolled out with a lot of success. Guyana’s Stabroek, Canje and Kaieteur Blocks are significant for ExxonMobil but sit in waters hundreds of kilometres off the coast of Guyana, in depths of more than 2000m – it’s challenging but rewarding.
In April 2023, SBM Offshore’s FPSO Prosperity arrived at the Stabroek block in Guyana, travelling 20,000km from Singapore in just under 50 days. “On track for first oil later this year, Prosperity becomes Guyana’s third FPSO joining Liza Destiny and Liza Unity,” the company said.
Following a naming ceremony that took place in February at the Keppel Shipyard, the Prosperity FPSO is the second Fast4Ward® design and will production 250,000 barrels per day while moored in water depth of 1900m. “As SBM Offshore’s CEO, I am proud to share in the Prosperity FPSO naming ceremony with you – to celebrate this day which we’ve worked towards relentlessly, together,” said SBM CEO, Bruno Chabas. “On behalf of SBM Offshore, we are extremely honoured to play a part in the shared journey of the nation of Guyana, partnering alongside our client ExxonMobil Guyana. Prosperity FPSO is also privileged to call the First Lady of the Co-operative Republic of Guyana, Her Excellency Mrs Arya Ali, her Godmother.”
May 2023 saw the company sign a 10-year Operations and Maintenance Enabling Agreement in Guyana with ExxonMobil. The company will operate and maintain the Liza Destiny, Liza Unity, Prosperity and ONE GUYANA FPSOs and will deploy digital tools across the fleet to ensure maximum efficiency.
“We are very pleased with the contract concluded with ExxonMobil Guyana leveraging both companies’ recognised operating excellence,” said Chabas. “This contract capitalises on our developments in Guyana to date, positioning the company for long-term operations in the country. The Integrated Operation Model is the first of its kind in the industry and extends our relationship with ExxonMobil Guyana by integrating further our teams. We believe it is the optimal solution to achieve excellence in the operation of Guyanese assets bringing value to all stakeholders and setting a new performance benchmark for the industry.”
In March, ONE GUYANA entered the drydock at the Keppel yard in Singapore where teams are busy completing the mooring structures and riser balconies. Soon, ONE GUYANA will head for the seas and will bring its two million capacity storage, 250,000 barrels per day, and a gas treatment capacity of 450 million ft3 per day to operation on the Stabroek block.
In June 2023, the company construction of its third Fast4Ward® FPSO when topside and commissioning was completed at the BOMESC shipyard in China. Named the Sepetiba, this unit headed straight for Brazil. “The FPSO has commenced its transit to the Mero field in the Santos Basin offshore Brazil, located 180km offshore Rio de Janeiro. SBM Offshore has a contract with Petróleo Brasileiro S.A. (Petrobras) for the 22.5 years lease and operation of FPSO Sepetiba. First oil is expected in the second half of 2023,” the company said.
Sepetiba can produce 180,000 barrels per day and store 1.4 million – an example of SBM delivering value for clients where they need it most.
EXPLORING IN CANADA
In the renewables space, SBM recently teamed up with DP Energy to create a JV that will explore floating offshore wind opportunities in Nova Scotia, Canada. Together, the pair will begin to create the foundations for a local, floating offshore space, using their combined experience to ensure the best possible outcomes.
“We are very pleased to announce the formalisation of our partnership with DP Energy, a well-recognised developer in the renewable energy space,” said SBM Offshore Managing Director New Energies and Services, Severine Baudic. “We believe that Canada’s offshore wind resource is amongst the best in the world. As an offshore energy transition company with proven experience in Nova Scotia, we are excited to expand our partnerships with the local community and write a new chapter, together.”
Nova Scotia aims to bring 5GW of offshore wind power online by 2030, with the country looking for diversification in its renewable energy mix. Currently wind, mainly onshore, contributes around 7.7% of total national capacity.
SBM has already developed innovative floating offshore structures that can economically produce power. Light, modular, easy to install, the SBM solution has low motions and accelerations at nacelle level, and requires no construction or port infrastructure.
As new technologies are rolled out, the company is looking forward with ambition. Coming off a strong base, SBM’s half year earnings for the first half of 2023 saw the company boast a US$3.2 billion pro-forma order book and US%9.5 billion pro-forma net cash flow.
“The increase in our order book to a new record level and reiteration of the 2023 guidance underline the fact that our strategy as an Energy Transition Company is delivering results.
We are on track to achieve first oil as planned this year on two major FPSO projects. FPSO Prosperity is already in Guyanese waters and FPSO Sepetiba has started her journey to Brazil from China. While we continue to live with the after-effects of the pandemic plus supply chain and inflationary constraints, we are progressing the remaining projects under construction and the overall margin remains robust at portfolio level,” said Chabas.
The responsible use of the oceans to help create the energy that we so rely on is where SBM clearly thrives. The systems it creates, combined with the focus its places on environmental wellbeing, are helping to achieve a just energy transition, preparing the company for the markets of tomorrow while securing the supplies of today. For Chabas, this is peaceful and calming, like the enduring waves of the ocean.
