ExxonMobil Makes Long-Term FPSO Supply Deal

ExxonMobil Makes Long-Term FPSO Supply Deal
ExxonMobil and SBM Offshore have signed a long-term agreement covering potential future FPSO orders.

Exxon Mobil Corp. and SBM Offshore have signed a long-term agreement covering potential future floating, production, storage and offloading (FPSO) orders, SBM reported Friday.

The non-exclusive agreement sets the general legal framework and specific terms for the engineering, procurement, construction and installation work on potential future contracts relating to leased FPSOs, SBM explained in a written statement emailed to Rigzone. In addition, SBM noted the deal covers typically short-term Build-Operate-Transfer projects.

“This agreement aims at extending our constructive business relationships with ExxonMobil that has been created through delivering a series of major offshore projects together,” noted Severine Baudic, managing director of SBM’s Floating Production Solutions unit. “We look forward to continue working together in the future and expanding our track record of reliable execution on deep water projects.”

SBM pointed out that its relationship with ExxonMobil began the 1970s. The firm stated that it has supplied the supermajor with more than 10 floating systems – including five FPSOs, deep water offloading systems and a floating storage offloading (FSO) unit – over the ensuing four decades. It also noted that “multiple major projects” are underway.

One recent project SBM delivered for ExxonMobil is the conversion of a very large crude carrier into the Liza Destiny FPSO. Liza Destiny is the first of as many as five FPSOs to be deployed in the Stabroek Block offshore Guyana.

“We are very pleased with the long-term FPSO supply agreement with ExxonMobil,” stated Bruno Chabas, SBM’s CEO. “This agreement is a continuation of our long history of successful teamwork between our companies, further strengthening our long-term cooperation.”

To contact the author, email mveazey@rigzone.com.


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