Fast4Ward™ gaining speed – SBM Offshore signs for hull #2 as keel is laid for hull #1

Coinciding with the keel laying ceremony for its first Fast4Ward™ FPSO hull, SBM Offshore signs the contract for a second hull with SWS shipyard in Shanghai, China.

November 21, 2018

Coinciding with the keel laying ceremony for its first Fast4Ward™ FPSO hull, SBM Offshore signs the contract for a second hull with SWS shipyard in Shanghai, China.

With the signing for this second hull in its planned series of Fast4Ward™ FPSOs, SBM Offshore is signaling to the industry that it means business and its game changing solution is on track and ready for when clients come calling. The level of client endorsement to date demonstrates that the concept is winning the confidence of the industry.

Although there is no concrete EPC contract for this second hull, the Company views the continuing positive industry outlook as a good indicator, hence the move to sign with SWS for a second floater. Parallel projects for Fast4Ward™ are now in motion at the yard.

Photo credit Chris Giles

SBM Offshore CEO Bruno Chabas said,

“The timing of our Fast4Ward™ strategy fits in perfectly with the market upturn. We have been preparing for this exact scenario since 2014 and today, we see tangible evidence of how Fast4Ward™ matches the industry’s need for cost-conscious, standardized solutions, which de-risk and accelerate projects. Major players are starting to invest in projects and are seriously considering our game-changing solution, as we saw with our July announcement of an FPSO FEED for the Liza development, which is based on our Fast4Ward™ program.”

Construction update on hull #1

The keel-laying ceremony marks a major step in the engineering, procurement and construction (EPC) phase for the new build vessel. It follows the first steel cut milestone in March. The FPSO is designed to produce 220,000 barrels of oil per day and will have associated gas treatment capacity of 400 million cubic feet per day, as well as water injection capacity of 250,000 barrels per day. The Fast4WardTM concept capitalizes on the Company’s unique experience in project delivery (34 FPSOs to date) combined with over 300 years’ cumulative experience in operating its lease fleet.

Photo credit Chris Giles

Editor’s notes:

  • In August 2018 (2018 Half-Year Earnings), SBM offshore announced that it intends to apply the Fast4WardTM philosophy to its overall offering of products and services, as well as also leveraging the investments that the Company is making in digitalization.
  • In July 2018, SBM Offshore announced that it had been awarded contracts for ExxonMobil’s second Liza FPSO, based on its Fast4Ward™ Program. The contracts are to perform Front End Engineering and Design (FEED) on an FPSO for the Liza development offshore Guyana. Following FEED, and subject to requisite government approvals and project sanction, SBM Offshore will construct and install, then lease and operate the FPSO for a period of up to two years.
  • In August 2017, SBM Offshore announced that it was moving forward with its Fast4Ward™ project (on speculation) with a contract for its first new-build, multi-purpose hull with China Shipbuilding Trading Company, Ltd. (“CSTC”) and the shipyard of Shanghai Waigaoqiao Shipbuilding and Offshore Co., Ltd. (“SWS”).
  • In May 2016 at OTC Houston, SBM Offshore launched its standardized FPSO concept Fast4Ward™. The design for the Fast4Ward™ FPSO is called ‘Generation 4’, the next step in the company’s series of Generation FPSOs.
  • Fast4Ward™ offers more than just buzz words – it offers a comprehensive solution for lower cost, faster schedule on the critical path, predictability and standardization. It can enhance project Net Present Value (NPV) and ensure that project economics are met.
  • SBM Offshore’s leading operating experience feeds into its engineering designs. Fast4Ward™ optimizes an FPSO design, creating standard specifications and enhancing reliability, bringing costs down further. It accelerates delivery and improves quality and productivity on a de-risked, more reliable plan, with a higher degree of safety.
  • The construction scope relates to the generic hull which, together with a catalogue of topside options, forms the basis of the Fast4Ward™ FPSO.
  • Basic Design Approval for the generic hull has been obtained from both the American Bureau of Shipping (ABS) and Bureau Veritas (BV)