Switch-a-Roo: SBM Offshore Awarded FPSO LOI from Woodside

SBM Offshore received a Letter of Intent from Woodside Energy Ltd for the turnkey supply of a disconnectable FPSO for the North West Shelf Venture in Western Australia. The FPSO will replace the currently operating FPSO Cossack Pioneer in the third quarter of 2010. Woodside is the operator of the North West Shelf Venture.

It is the intention to use the Okha FSO for conversion into the FPSO with a disconnectable turret. The Okha FSO is currently under contract with SEIC for operation in Sakhalin until latest December this year. On release it will sail to a shipyard for conversion and integration of the process modules and turret.

The disconnectable turret on the Cossack Pioneer FPSO was initially supplied by SBM in 1994. The fixed part of the turret, which is connected to the seabed with mooring lines and connects the production risers to the FPSO, will be reused for the new FPSO, allowing for quick hook up and minimal downtime when changing out the FPSOs.

The commitment under this LOI is limited to US$ 145 million and subject to Project Final Investment Decision, with the portfolio value of the full contract scope expected to be around US $700 million.