Round-the-Clock Proceedings at SBM Offshore

Longtime experience in designing, constructing, engineering and operating offshore oil production vessels has resulted in a leading position for SBM Offshore as provider of turn-key FPSOs for sale or lease. While the size of the oil production units is continually increasing, the company is involved in various smaller-scale LNG projects as well. Their global presence may flourish with responsibility towards local communities.

“We are currently constructing the largest and most complex Floating Production, Storage and Offloading vessel ever built by SBM Offshore”, engineering director Jaap- Harm Westhuis enthusiastically reveals at the Schiedam Execution Centre and headquarters of SBM Offshore N.V. “Here at Schiedam, we are best equipped to manage the more complex projects. For this FPSO we do a hull conversion of a very large crude carrier – VLCC – in China. The technologically advanced topsides – the oil production factory on top of the deck – will be manufactured and installed on the hull in Brazil. When finished, the Cidade de Ilhabela will operate in Brazilian waters for Petrobras. Projects like these require our people to work all over the world. For this reason we have project management offices in the different time zones. This enables us to supervise ongoing projects as they evolve. Close communication and access to crucial data between project managers in different parts of the world is essential.”

SBM Offshore designs, manages the build process, equips and sells or leases out completed FPSOs to their clients, oil companies worldwide. Thriving on longtime experience and a very good track record with uptime of their vessels, the company wins and executes FPSO projects. Nowadays, they operate a fleet of 15 of these vessels, crewed with SBM Offshore personnel. A total of 6,200people work at the company, generating over three billion US dollar turnover yearly. SBM Offshore represents the high-technology, internationally focussed and innovative Dutch marine industry, with a history of more than 150 years in the Schiedam shipbuilding industry. In 1959, engineers of the Gusto Shipyard came up with the Single Buoy Mooring concept for the transfer of crude oil to and from VLCC tankers. This 53 year old innovation still echoes in the company name. Nowadays, SBM Offshore is listed at the AEX index of the Amsterdam stock market. Project execution centres in Schiedam, Houston, Monaco and Kuala Lumpur ensure round-the-clock presence of engineers monitoring proceedings. Nine shore bases are hubs for crewing and supplies. Whilst operating worldwide, the SBM Offshore fleet sees concentration at both shores of the southern Atlantic Ocean, along the west coast of the African continent and in the Brazilian continental waters. These concentrations clearly indicate where oil production will maintain ongoing volumes throughout the next decades.

“Every FPSO project requires new engineering”, Westhuis explains. “Our clients inform us about the water depth of the production site, the weather conditions, the type of oil won as well as the expected remaining reserve at the field. This results in a lifetime demand for the operation of the vessel. We design FPSOs to service during a determined lifetime. If the vessel has served its lifetime as required by our client, we generally refit or convert the vessel so it can perform again at another production site. For this next production site, the parameters will be different, causing need for specialised equipment and lay- out. In case of an extension of the duration of the oil exploitation in a particular field, we can also overhaul or refit our FPSOs to extend the lifetime. Designing to specification is one of the drivers to increase efficiency in operation for our clients. The company is also involved in newly explored natural gas fields like in Western Australia or the Arctic Sea.”

”The gas market is a different one from the oil market”, Westhuis continues. “With natural gas, long-term contracts are made that cause the exploitation companies to control the whole production, transport and delivery chain. AtSBM Offshore we are involved in the design, engineering and production of parts of the floating gas vessels. At the Prelude gas field at the west Australian shore, we are designing the turret and swivel for the FLNG. That is also our involvement in the Shtockman gas field LNG production project in the Arctic Sea. SBM Offshore could also operate as a major party in LNG production at smaller gas fields, up to 1.5-2 mtpa (mega ton per annum) production. We are now developing conversion plans to rebuild a gas carrier into an FLNG, a floating LNG production facility.”

Spreading design, construction and installation capacities over different countries around the globe is a necessity for SBM Offshore. National politics from different countries often pose a reason to spread activities. “When a contract for an FPSO like Cidade de Ilhabela or Cidade de Paraty is granted, the Brazilian government demands the national marine industry to also benefit from the project”, Westhuis explains. “The people need jobs and the local industry needs impulse. The same applies for West-African countries, though they tend to be less restrictive in their demands. It is only logical that developing countries, that do not have the means or the know-how to exploit their natural richness, ask the western companies that come and exploit the reserves, to invest in the national economy. We applaud that. We really want to add to local and national development in a positive way. That is why we have established yards in Rio de Janeiro and Luanda. Being in business with governments in developing countries also demands clear company ethics. We have a code of conduct with strict compliance rules in line with international corruption acts. We fully support anti-bribery and anti-corruption acts and are convinced that they are beneficial for the development of the countries we work in. And it is our aim that the SBM Offshore projects lead to the well-being of the local communities where these projects are carried out.”

Hans Buitelaar