Dutch FPSO operator SBM Offshore has signed contracts with China Merchants Heavy Industry (CMHI) for the construction of up to four FPSO hulls.
The contract consists of a firm order for one unit and options for another three. The hulls will be built at CMHI’s yard in Haimen, Jiangsu. It is also CMHI’s first ever FPSO construction project.
The construction of the first unit is expected to be completed in 24-30 months.
The latest newbuilding project is part of SBM Offshore’s Fast4Ward program.
“SBM Offshore is uniquely positioned to benefit from the current upturn. The most economically attractive deepwater developments require high production capacities, which can benefit most from shorter cycle time to first oil, combined with larger and more complex processing capacities. Fast4Ward facilitates this goal, lowering costs and providing a reliable execution plan,” SBM Offshore’s CEO Bruno Chabas said last year.
Currently SBM Offshore has another two FPSO hulls under construction at Shanghai Waigaoqiao Shipbuilding with options for another three.