At SBM Offshore, we are deep water specialists with the oceans the source of our expertise. We thrive on the world’s energy challenges as demand increases. We are committed to sustainable energy and we innovate to make our mark on the energy transition. How? By building on our experience in oil, gas and renewables, by investing in our people and in our R&D. We have changed the face of the industry with our groundbreaking Fast4Ward® program; now a reference for de-risking and fast-tracking projects. We optimize, transform and innovate.This is our story in 2019.
First Generation 3 FPSO goes into operations
The lease and operate contract that commenced in June 2013 marked a major achievement with the delivery and first oil for FPSO Cidade de Paraty offshore Brazil. Paraty was the first in a series of four pre-salt FPSOs and at the time it represented the deepest in SBM Offshore’s operating fleet at 2,140 meters. The FPSO design is what SBM Offshore calls ‘Generation 3’, capable of high production capacity up to 150,000 bopd and with a topsides weight up to 23,000 tons. The four pre-salt FPSO projects delivered illustrate that SBM Offshore’s ‘design one and build several’ concept works and provides added value to clients, while progressing the Company’s standardization efforts.
Thunder Hawk Semi-sub hub begins producing in the Gulf of Mexico (USA)
SBM Offshore’s Thunder Hawk DeepDraft Semi was installed and started production for Murphy Oil in the Gulf of Mexico in July 2009 under a Production Handling Agreement (PHA). In 2014 SBM Offshore signed a PHA with Noble Energy to tie-back the Big Bend and Dantzler fields to Thunder Hawk. The additional tie-backs illustrate the strategic value of the platform to SBM Offshore, while offering the industry a cost effective development solution for the Gulf of Mexico. The Thunder Hawk offers numerous advantages for deepwater, subsea developments including reduced development capital, lower operating costs, an accelerated development schedule.
First Lease & Operate FPSO contract
SBM Offshore pioneered the lease and operate concept for Floating Production Storage and Offloading (FPSO) units based on tanker conversions. The Company leased its first FPSO in 1980, opening up a new opportunity for clients to reduce their CAPEX. Named FPSO II, it was deployed on the Cadlao field offshore The Philippines, where oil production started in August 1981. With the first contract to design, construct, install and operate the unit, SBM Offshore led the way for a new, commercial model for FPSOs, launching the lease and operate market as we know it today. FPSO designs have changed considerably over the years as clients’ needs evolve.
Company presence grows worldwide
In a strategic move to focus on sales and after sales service of buoys and to facilitate closer engagement with clients, the Board of IHC approved the set-up of a separate company. On February 27, 1969, Single Buoy Moorings Inc. was registered in Switzerland. By mid-1969, the Company had grown and was operating from three locations: Rotterdam, Fribourg and Antwerp. The move to Monaco of the Company’s engineering activities took place in 1971 and the Regional Center (RC) remains the heart of SBM Offshore’s technological innovation and the largest RC of the five RCs located around the globe, including Schiedam, Houston, Kuala Lumpur and Rio.
Listing on the Amsterdam stock exchange
SBM Offshore N.V. shares have been listed on the Amsterdam stock exchange since October 11, 1965 originally under the name IHC Holland and later as IHC Caland and finally as SBM Offshore N.V. in 2005. The shares are currently included in the AEX Index of Euronext Amsterdam. Options on the Company’s shares have been traded since July 7, 1993 on the Euronext Amsterdam Derivative Markets.
First order for a single point mooring buoy
SBM Offshore has a long history of innovation. From its shipping origins at the Gusto Shipyard in the Netherlands, IHC (as the Company was first known) secured a contract to supply its single point mooring system (SPM) for Shell’s operations offshore Indonesia in 1959. Instead of the multi buoy systems used at the time, the design for this buoy was a pioneering SPM system on which Shell and SBM Offshore had first begun collaborating in 1958. It proved to be so successful that it went on to be used extensively, opening up new possibilities for the industry. Demand for Catenary Anchor Leg Mooring (CALM) buoy terminals continues today.
MESSAGE FROM THE CEO
In sporting terms, SBMers scored this year. Our first FPSO in Guyana achieved first oil. Our solution to market needs resulted in three Fast4Ward hulls allocated to clients’ projects and two ready to meet demand. We stay on the right path, aligned with our vision, leading to profitable growth.
In 2019 we delivered a strong financial performance. Directional revenue increased by 27% to US$2,171 million and pro-forma backlog by US$6 billion to US$21 billion, mainly due to a ramp-up in turnkey activity (over 100% compared with 2018). Dividends increased by 100% compared to 2018.
Fleet oil production capacity increased with operations starting on FPSO Liza Destiny. Digital solutions improved offshore operations and optimized uptime, now at a six-year high of 99.4%. Smart Operations' program begun, aiming to deliver safer, more reliable and more efficient operations.
First oil in record time, two FPSO contracts plus a FPSO FEED represent success for our Fast4Ward program. 2019 saw five new-build hulls progress, with one completed year-end; three are for projects in Guyana and Brazil. Pursuit of our energy transition led to a test plan for our Wave Energy Converter pilot.