SBM Offshore project portfolio at record level with multiple Guyana FPSOs in play

Dutch floater specialist SBM Offshore reported on Thursday an Underlying Directional revenue of US$2,317 million for 2021, an increase of 1% compared with 2020, mainly resulting from ramp-up of activities with five FPSOs under construction in 2021, the awarded limited scope on the FPSO for the Yellowtail project in Guyana and a higher contribution from the renewables and offshore services product lines.

SBM Offshore said the revenue increase from this general ramp-up more than offsets the year-on-year decrease resulting from the Johan Castberg Turret Mooring System project delivery in 2020.

“Our project portfolio stands at a record level with five projects under execution and a large FEED underway for the Yellowtail development project for Exxon in Guyana,” said Bruno Chabas, CEO of SBM Offshore.

He said the Liza Unity FPSO is now in the commissioning phase, in line with the company’s pre COVID-19 schedule.

“The other projects remain on track relative to the latest planned schedules and we continue to anticipate a competitive level of performance from this portfolio,” Chabas stated.

Project teams have continued to work closely with client teams and contractors to mitigate the impacts of COVID-19 on the execution of projects. The company said the degree to which these challenges can be mitigated going forward varies from project to project.

“The profitability of SBM Offshore’s overall project portfolio remains robust and competitive,” the company said. This includes multiple FPSOs in play for projects at the ExxonMobil-operated Stabroek Block in Guyana.

In this regard, SBM Offshore provided the following updates:

FPSO Liza Destiny

The third stage flash gas compressor on the unit remains stable and continues to operate. Additional engineering activities are ongoing to finalize a redesigned flash gas compressor with an expected installation on the unit around mid-year 2022.

FPSO Liza Unity

The FPSO Liza Unity arrived safely in Guyana in October 2021 where the hook-up and the installation campaigns have successfully been completed. Operations readiness activities have progressed and the project targets first oil in the first quarter of 2022.

FPSO Prosperity

The work in dry dock is progressing per schedule with the installation of the mooring systems. The topsides module fabrication is ongoing with the first modules planned to be completed and lifted in the first quarter of 2022. First oil is expected in 2024.

SBM offshore has been awarded contracts to perform Front End Engineering and Design (FEED) for the Yellowtail FPSO, ExxonMobil’s fourth development project in Guyana. Following FEED, subsequent government approvals and project sanction including final investment decision by ExxonMobil and release of the second phase of work, SBM Offshore will construct, install and then lease the FPSO and operate it for a period of up to 2 years.