EDITOR: | July 22nd, 2013

SBM Offshore Awarded Contracts to Provide World’s Deepest Disconnectable FPSO for Shell Stones in Gulf of Mexico

| July 22, 2013 | No Comments
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July 22, 2013 (Source: Marketwired) — FPSO for Stones SBM Offshore is pleased to announce it has signed contracts with Shell Offshore Inc. to supply and  lease an Floating  Production Storage and Offloading (FPSO) for the Stones development project in the Gulf of Mexico. The contracts include an initial period of 10 years with future extension options up to a total of 20 years. The Stones development is located in 2,896m (9500ft) of  water approximately 320km (200 miles) offshore Louisiana in the Walker Ridge area. When installed, the Stones FPSO will be the deepest FPSO development in the world.

The  converted  Suezmax  FPSO  will  have  a  turret  with a disconnectable buoy (Buoyant  Turret Mooring or BTM) allowing it to weathervane in normal conditions and  disconnect from the FPSO upon the approach  of a hurricane. The BTM will be configured  with Steel Lazy-Wave Risers (SLWR) which will be a first application for  a disconnectable FPSO. The mooring system will also incorporate the ability to  adjust line tension during operations by use of an In-Line Mooring Connector (ILMC).  SBM Offshore’s 30 years of turret  experience including the delivery of nearly 50 systems will be leveraged to supply this pioneering BTM system.

The FPSO is a typical generation 2 design with a processing facility capacity of 60,000 barrels  of oil per day (bopd) and 15 mmscfd of gas treatment and export. No  water injection facilities are  specified. The Suezmax hull  will be able to store  800,000 barrels  of  crude  oil  and total topsides weight will reach 7 thousand tons.

In  March 2012, Shell and SBM Offshore  signed an Enterprise Framework Agreement (EFA) for the supply of medium and small FPSOs on a lease and operate basis. The Stones FPSO is the first Shell project to award contracts utilizing the EFA. SBM Offshore  and  Shell  have  been  engaged  in front-end development work for the Stones  FPSO  solution  for  the past  two  years.  Execution  work has already commenced  in SBM Offshore’s Houston Execution Center with early procurement and commitments underway.

The total asset value of the FPSO is approximately US$ 1 billion.

SBM Offshore CEO Bruno Chabas commented: “We are delighted to have been selected to supply the deepest  loating  installation  in  the  world, setting a new technological  benchmark and  confirming our  position as  a leader  in the FPSO market and large turret mooring systems for Deepwater. The Stones project is the latest  successful FPSO award with Shell  and reaffirms SBM’s continued focus on building  long term relationships and FPSO-led strategic vision. We look forward to working on further groundbreaking projects with Shell in the years to come.”

 

| Financial Calendar                                      | Date   | Year |
+---------------------------------------------------------+--------+------+
| Half-year Results 2013 - Press Release (18.00 CET)      | 07-Aug | 2013 |
+---------------------------------------------------------+--------+------+
| Half-year Results 2013 - Analysts Presentation          |        |      |
|   (19:00 CET)                                           | 07-Aug | 2013 |
+---------------------------------------------------------+--------+------+
| Trading Update Q3 2013 - Press Release (07.30 CET)      | 14-Nov | 2013 |
+---------------------------------------------------------+--------+------+

 

Corporate Profile SBM Offshore N.V. is a listed holding company that is headquartered in Schiedam. It holds direct and indirect interests in other companies that collectively with SBM Offshore N.V. form the SBM Offshore group (“the Company”).

SBM Offshore provides floating production solutions to the offshore energy industry, over the full product life-cycle. The Company is market leading in leased floating production systems with multiple units currently in operation, and has unrivalled operational experience in this field. The Company’s main activities are the design, supply, installation and operation of Floating Production, Storage and Offloading (FPSO) vessels. These are either owned and operated by SBM Offshore and leased to its clients or supplied on a turnkey sale basis.

Group companies employ over 7,400 people worldwide, who are spread over five execution centres, eleven operational shore bases, several construction yards and the offshore fleet of vessels. Please visit our website at www.sbmoffshore.com.

The companies in which SBM Offshore N.V. directly and indirectly owns investments are separate entities. In this communication “SBM Offshore” is sometimes used for convenience where references are made to SBM Offshore N.V. and its subsidiaries in general, or where no useful purpose is served by identifying the particular company or companies.

The Board of Management Schiedam, 22 July 2013

To  see the  complete version  of this  press release,  please click on the link below.

SBM Offshore Press Release: http://hugin.info/130754/R/1717902/571348.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: SBM Offshore N.V. via Thomson Reuters ONE
[HUG#1717902]


Raj Shah

Editor:

Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>


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