With a ceremony to mark the first steel cut, Netherlands-based SBM Offshore, a provider of the design, construction, installation, and operation of offshore floating facilities, has ticked an important item off its construction list for a floating production, storage, and offloading (FPSO) vessel, which will be deployed off the coast of Suriname.
While describing the construction milestone as a key moment in the journey of the FPSO GranMorgu , SBM Offshore explained that the project reached a major milestone on May 20, 2025, with the first steel cut ceremony at BOMESC Shipyard in Tianjin, China.
Boudewijn Ledderhof , Project Director at SBM Offshore, commented: “I’m thrilled to share that we have officially started module fabrication for the GranMorgu FPSO at BOMESC Shipyard in Tianjin, China. Being present at the first steel cut ceremony was an excellent experience, marking a significant step in Suriname’s first deepwater development.
“Congratulations to our dedicated joint project team from SBM Offshore and Technip Energies, and our client and its partners: TotalEnergies, APA and Staatsolie for this successful collaboration and their hard work and commitment.”
This step represents the official launch of the vessel’s topsides module fabrication. SBM Offshore and Technip Energies were picked to take care of the work related to the FPSO after a final investment decision (FID) was made for the 12.2-billion GranMorgu offshore oil field in Block 58, located around 150 kilometers off Suriname’s coast.
Operated by TotalEnergies with APA Corporation and Suriname’s national oil company (NOC), Staatsolie Maatschappij Suriname (Staatsolie) , as its partners, the project intends to develop resources on Block 58 within the Sapakara and Krabdagu fields. With a capacity of 220,000 barrels per day, the FPSO will entail an all-electric drive, zero routine flaring, and gas reinjection.
“The GranMorgu FPSO stands as a testament to our commitment to merging innovation with reliability, and collaborations that advance our industry,” underlined SBM Offshore.
Staatsolie, which set the wheels in motion to get the money required to cover its part of the development costs and join the project earlier this year, concluded a $1.6 billion bank loan with a group of 18 banks and financial institutions on May 14, 2025, to finance its 20% participation in GranMorgu.
The firm will use the new loan to fully repay the outstanding bank loan of $130 million and finance its 20% participation in the project, with the current estimates indicating that $2.4 billion is required for this. Aside from the bank loan, the financing needed for GranMorgu will include its own cash, cash flow from the business, and the proceeds from the bonds issued in March 2025.
The oil project is expected to have a scope 1 and 2 emissions intensity of less than 16 kg CO2e/boe. Aside from SBM Offshore and Technip Energies, many other players will work on bringing this oil development to life, including ADC Energy, TechnipFMC , and Saipem .