The four Floating Production Storage and Offloading (FPSO) vessels currently being built by SBM Offshore are positively contributing to the company’s growth phase. Two of the FPSOs are being constructed for operations offshore Guyana at the ExxonMobil-operated Stabroek Block.
On May 12, SBM Offshore released its first quarter trading update for the year and reported that underlying directional revenues amounted to US$536 million. According to the Chief Executive Officer of SBM Offshore, Bruno Chabas, the first quarter results are in line with expectations.
The company’s operating performance continues to be strong despite the challenges posed by the pandemic. It said too that major projects under construction are progressing as expected.
Among the four major ‘Lease and Operate’ projects that the company is working on are the Liza Unity FPSO and the Prosperity FPSO. These two vessels are being constructed for the Liza Phase 2 development and the Payara development offshore Guyana. It was also disclosed that the Lease and Operate projects continue to generate strong operating cash flow.
“Our increased dividend represents a cash yield of more than 5%. This dividend is underpinned by the infrastructure platform of our Lease and Operate backlog which now brings cash flow visibility up to 2050,” Chabas reported.
He continued, “Our core business is going through a significant growth phase with four major FPSO projects under construction. World-class deep water projects continue to rank among the most attractive investments available to our clients. Our Fast4Ward® and emissionZEROTM FPSO programs provide industry-leading cost and carbon efficient solutions to help clients maximize value from these investments.”
Providing an update on the progress of the Guyana-bound projects, it was reported that the work on the Liza Unity FPSO continues on schedule.
“Following the completion of the topside lifting campaign during Q1 2021, work is further progressing on integration and commissioning stages. The project continues to target first oil in 2022 in line with client planning,” the company said.
Meanwhile, the fabrication works for the Prosperity FPSO topsides have begun in Singapore and the project is progressing according to schedule with a planned completion in 2024. “To further develop local capabilities, Guyanese companies were awarded contracts and started the fabrication of FPSO components in Guyana. In addition, Guyanese engineers have been hired and integrated into the project execution team,” SBM Offshore said.
SBM Offshore has been awarded contracts for the FPSOs to be built for the three sanctioned developments in Guyana. The company in the first quarter report noted that they also have Multi-Purpose hulls in support of ongoing tendering activity. Back in 2019, the company and ExxonMobil signed a Long-Term Agreement covering potential future FPSO orders for the South American country.
