Exclusive interview with SBM Offshore: South America anchors business growth, as West Africa emerges on FPSO horizon

Given its expectations of a stable floating production, storage, and offloading (FPSO) market in 2026, Netherlands-based SBM Offshore, a provider of the design, construction, installation, and operation of offshore floating facilities, is keeping Brazil and Guyana as the core hub of its FPSO activity, while eyeing new opportunities in West Africa, as it prepares two floating offshore units for work in Suriname and Mexico. The Dutch giant forecasts that the road to 2050 is likely to bring decarbonization and energy transition headwinds, but FPSOs are anticipated to remain in play on the energy stage.

As the Dutch FPSO giant focuses on ensuring safe, timely, and budget-aligned project delivery, while moving forward with the next phase of its emission-reduction journey, Olivier Icyk, SBM Offshore’s Chief Business Officer, highlighted during his interview with Offshore-Energy.biz that the company’s core priority would be to strengthen its operational performance across the fleet and continue to implement digital solutions that improve reliability and efficiency.

Icyk elaborated: “We will look into new technologies that support decarbonization and expand our offering beyond traditional FPSOs: the recent partnership with Veolia Water Technologies on the designing and implementation of floating desalination units goes in that direction. The year ahead is about execution, disciplined growth, and preparing our portfolio for the evolving global energy landscape.”

While discussing the Netherlands-based player’s key growth markets, the firm’s Chief Business Officer underlined that 13 of the company’s 16 FPSOs in operation are on work assignments in South America, with nine being deployed in Brazil and four in Guyana.

As a result, both will stay in the FPSO game: the first country will continue to be a strategic market due to the scale of its deepwater developments, while the second one remains an important region where the firm has built long-term partnerships.

SBM Offshore’s Chief Business Officer emphasized: “Beyond the Americas, we see opportunities emerging in West Africa as activity gradually increases. Besides that, we are actively cooperating with local authorities and institutions in Suriname in view of the arrival of FPSO GranMorgu in 2028, as well as in Mexico for FSO Chalchi. Our focus is on leveraging our core capabilities wherever deepwater development continues to expand.

“While we are cautious in defining any region as a frontier for 2026, we are attentive to exploratory activity in Africa and select basins in Latin America. However, we approach frontier markets pragmatically — prioritizing opportunities where we can bring most value with our experience in large, complex, low-emission, deepwater FPSO experience and where long-term partnerships can be built.”

The company is working on introducing new technologies to curb greenhouse gas (GHG) emissions from FPSO operations, while carbon capture will continue to be an important decarbonization pathway.

The other emission-cutting tools the firm is progressing entail electrification of topsides systems, hybrid power solutions using advanced battery storage, optimization of gas turbine efficiency, advanced flare-reduction systems, and the integration of digital performance tools to reduce energy consumption.

“Our approach is multi-layered because meaningful decarbonization requires a combination of solutions working together, combined with long-term operational experience,” added Icyk, while explaining that the concept of an all-electric FPSO running on offshore renewable energy technologies is technically feasible in the long term, but not yet commercially deployable at scale.

SBM Offshore’s Chief Business Officer continued: “Full electrification powered solely by offshore renewables will require major advances in energy storage and large-scale power integration offshore. That said, the industry is progressing quickly, and SBM Offshore is actively studying the building blocks that could make this vision achievable. It’s not a near-term solution, but it is part of the longer-term innovation agenda.”

Icyk anticipates the FPSO market to remain stable in 2026, supported by deepwater projects with attractive breakevens and strong demand from national oil companies (NOCs). The tailwinds the Dutch player’s Chief Business Officer sees encompass the continued need for reliable offshore production to meet global energy requirements and the competitiveness of deepwater resources in a balanced energy mix.

While noting the possibility of headwinds for the FPSO market as time goes by, he underscored: “Looking toward 2050, the sector will probably face headwinds from the acceleration of decarbonization policies and the expansion of alternative energy sources.

“Nevertheless, FPSOs will continue to play a role in meeting demand, particularly in regions with proven large-scale deepwater reserves. The companies that can operate with the lowest emissions and highest efficiency will be the ones positioned to thrive.”

Icyk is adamant that SBM Offshore’s priority remains centered on delivering safe, reliable, and efficient operations while supporting its clients through the energy transition.

“SBM Offshore has a long track record of adapting to change, and 2026 will be no different — we will continue innovating, strengthening partnerships and investing in the technologies that shape the future of offshore energy,” concluded the firm’s Chief Business Officer.

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