Latest update January 14th, 2025 3:35 AM
Latest News
- ‘Guyana could have received at least US$13B to date from oil’
- ExxonMobil preparing for oil production at 6th project
- Final draft of Gaza truce deal presented to sides after ‘breakthrough’, official says
- Venezuela detains tanker falsely flying Guyana’s flag
- ‘Pres. Ali made it clear no renegotiation of Exxon contract’ – Hess boss tells conference
3 ships alone in Stabroek Block will give Dutch company profits for the next 30 years
The Liza Destiny operating in the Stabroek Block.
Kaieteur News – Dutch floater specialist, SBM Offshore, yesterday updated shareholders and reported that its lease and operate turnkey projects for its four Floating Production Storage and Offloading (FPSO) vessels, will see the company with cash flow visibility up to 2050 facilitating dividend payments.
Three of the four vessels that are buoying the company’s financial performance belong to the Guyana Stabroek Block operations, namely the Liza Destiny, Unity and Prosperity—Unity and Prosperity are currently under construction.
This publication understands that the Liza Unity is set to arrive next month with Saipem’s Constellation vessel currently in the Stabroek Block finishing up the subsea systems, in order to hook up to the FPSO when moored.
According to the information shared with shareholders by SBM Offshore’s Chief Executive Officer (CEO), Bruno Chabas, the financial results over the first quarter of 2021 “are in line with our expectation.”
This obtained, despite the continuing challenging environment due to the pandemic, Chabas said, even as he reported that, “our operating performance was strong and our major projects under construction are progressing as expected.”
According to the CEO, “our increased dividend represents a cash yield of more than five percent” and that, “this dividend is underpinned by the infrastructure platform of our lease and operate backlog which now brings cash flow visibility up to 2050.”
As such, the company’s 2021 projected revenue is maintained at around US$2.6 billion of which around US$1.6 billion is expected from the Lease and Operate segment and around US$1 billion from the Turnkey segment.
He explained that “our core business is going through a significant growth phase with four major FPSO projects under construction.”
According to Chabas, “world-class deep water projects continue to rank among the most attractive investments available to our clients.”
He said that the company’s Fast4Ward and emission ZERO FPSO programmes, provide industry-leading cost and carbon efficient solutions to help clients maximise value from these investments. The Guyana vessels are being designed using this suite of technologies.
According to Chabas, “we believe that SBM Offshore has a significant role to play in satisfying the world’s future energy demand using our experience and technology both to offer low emission production solutions and new solutions for the energy transition.”
It was explained that SBM Offshore’s Turnkey division currently has four major projects under construction.
Providing an update on the ongoing projects, the company noted that on the Liza Destiny, further work is being done on elements of the flash gas compression system which is expected to be delivered during the month of July 2021.
Additionally, the company said plans initiated in 2020 are progressing to install a redesigned third stage flash gas compression system at the end of this year.
SBM Offshore said it is continuing to work closely with the client and with the equipment manufacturer in order to expedite resolution of the situation.
With regards the second vessel—the Liza Unity—SBM Offshore disclosed that following the completion of the topside lifting campaign during Q1 2021, work is further progressing on integration and commissioning stages. “The project continues to target first oil in 2022 in line with client planning,” it noted.
As it relates to the FPSO Prosperity, SBM Offshore reported that the topsides fabrication started in the yards in Singapore and that the project is progressing according to schedule with a planned completion in 2024.
Accordingly, it was reported that in order to further develop local capabilities, Guyanese companies were awarded contracts and started the fabrication of FPSO components in Guyana. Additionally, the company said Guyanese engineers have been hired and integrated into the project execution team.
According to the company too, under the Company’s Fast4Ward® programme, the total number of hulls ordered to date stands at six, two of which are allocated to FPSOs Liza Unity and Prosperity with another two supporting ongoing tendering activity.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
The PNCR and AFC are a blight on democratic politics
Peeping Tom… Kaieteur News- The People’s National Congress Reform (PNCR) and the Alliance For Change (AFC) have forfeited... more
Clarifying misconceptions about the Panama Canal
Sir Ronald Sanders (Antigua and Barbuda’s Ambassador to the US and the OAS) By Sir Ronald Sanders Kaieteur News–... more
Weekend Cartoon
