On January 16th, BOMESC Offshore Engineering Company Limited (hereinafter referred to as “BOMESC Offshore Engineering”) released the Announcement on Signing of a Major Contract.
The announcement disclosed that BOMESC Offshore Engineering has signed a contract with STS VOF for the construction of the topside modules of the offshore Floating Production, Storage and Offloading (FPSO) vessel, with a contract value of RMB 750 million – 1 billion (approximately US$102 million – US$137 million).
The main scope of work includes the design, material procurement and construction of the FPSO topside module. The contract will take effect in January 2025 and is scheduled for completion in January 2027. The final contract amount will be accounted for based on the actual amount of work completed.
STS is a company registered in the Netherlands and is jointly owned by a wholly owned subsidiary of SBM Offshore in the Netherlands and a wholly owned subsidiary of Technip Energies in France.
According to the announcement, the FPSO will be deployed in the Suriname oil fields after completed construction.
BOMESC said that as the first topside construction site in China to establish a cooperative relationship with SBM Offshore, it has delivered the first FPSO project FPSO SEPETIBA, which is the first FPSO project to be fully completed in China with hull, topside construction and full assembly services. BOMESC and Technip Energies have also cooperated in executing multiple construction projects in the offshore engineering field.
BOMESC Offshore Engineering indicated that the signing of this contract will strongly protect the company’s workload and positively affect the company’s performance in the current and future years, but it is not yet possible to measure the specific impact of the contract’s fulfillment on the company’s financial indicators.
The contract terms have made clear agreements on the scope of the contract, price, payment methods, etc., and the risk of fulfillment is relatively small. The Company will continue to expand its overseas markets and strive for more quality orders to enhance its performance.
In addition to BOMESC, according to industry sources, a shipyard under COSCO Shipping Heavy Industries has also been awarded a contract for some of the FPSO’s topside modules.
It is reported that in December last year, the Netherlands SBM Offshore and Shanghai Waigaoqiao Shipbuilding (SWS) signed the hull construction contract for this FPSO. This order is the sixth “general-purpose” FPSO hull construction contract signed between SBM and SWS, with the first five delivered between 2019 and 2024.
The FPSO will be Suriname’s first large-scale deepwater development and is expected to produce up to 220,000 barrels of oil per day, with associated gas handling capacity of up to 500 million cubic feet per day. The FPSO is multi-point moored and will operate in water depths of approximately 400 meters, with a storage capacity of approximately 2 million barrels of crude oil.