First steel cut in China for SBM Offshore’s Fast4Ward FPSO

World’s largest FPSO supplier SBM Offshore has seen the first steel cut for the hull of its standardized Fast4Ward FPSO.

The Fast4Ward program has been designed to standardize the FPSO construction and delivery process, thus reducing cost and speeding up the time to the market.

The steel cutting ceremony took place at the SWS yard in Shanghai, China on Friday, March 23, 2018. The Dutch FPSO owner ordered the hull on speculation back in August 2017.

SBM Offshore, whose FPSO fleet produces around 10 percent of global deepwater production, has said the program can make its customers’ deep-water project returns more attractive in today’s oil price environment.

“As our concept becomes reality, we demonstrate our commitment to this game-changing project that provides further predictability and added value for our clients. We are happy with the progress on our cost-effective solution for future FPSO projects. In an industry that more than ever needs performance in a lower-for-longer oil price environment, SBM Offshore brings a competitive edge to the table with Fast4Ward,” says Bernard van Leggelo, SBM Offshore China Managing Director.

In its previous statements, SBM Offshore said that Fast4Ward can accelerate delivery of an FPSO by up to 12 months. For a typical project, this can boost value for a client by more than US$0.5 billion, materially lowering project break-even prices, SBM said.

According to a recent report by GlobalData, a total of more than 50 FPSOs are expected to start operations globally by 2022.

South America will continue to lead globally with planned deployment of more than 20 FPSOs, followed by Africa and Asia by 2022.

Among countries, the report reveals, Brazil continues to dominate in terms of deployment of planned and announced FPSOs, followed by Nigeria and Angola. Worth noting, Guyana has recently emerged as an important oil and gas province after a string of large oil discoveries made by Exxon in Stabroek block.

According to available information, Exxon and its partners are planning to deploy three FPSOs to develop the found resources in Guyana. SBM Offshore has already won a contract to deliver one of those three FPSOs – for the development of the first phase of the Liza discovery in Guyana.

Exxon and its partner Hess are looking at deploying two more FPSOs – one for the second phase of the Liza development, and one for the Payara discovery development.

Offshore Energy Today Staff