SBM Offshore is active in multiple energy markets − oil, gas and renewables. Oil markets mainly supply the transportation and industry sectors, while gas and renewables feed into power generation, industry and consumer sectors. Currently, most of SBM Offshore’s revenues are derived from the deep water oil and associated gas markets. The Company is the leader in its market in terms of total oil and gas production capacity (boepd) and the number of units delivered to date, accumulating over 330 contract years of operating experience. Within the Renewables market, the Company has been focusing on opportunities for the floating offshore wind and wave energy segments, aiming to have pilots installed in the coming years.
In order to maintain its leading position in its core markets, SBM Offshore focuses on:
- Leveraging the Company’s experience and business model by strengthening its position, whilst also looking to develop sustainable business in new regions.
- Transformation programs to increase return for our customers, such as Fast4Ward®, which reduces delivery time via standardization and improves efficiencies and productivity supported by digital initiatives.
- SBM Offshore selected concrete -related targets and is developing roadmaps to contribute to these targets.
Following these guidelines, SBM Offshore develops its product portfolio within the oil, gas and renewable energy sectors.
The global market for SBM Offshore focusing on two of them:s can be roughly split into three segments (new-build, large conversions and small conversions), with
- New-build SBM Offshore is focusing on this segment with its Fast4Ward design. The Company has three Fast4Ward that are allocated to projects, with two more hulls ordered in anticipation of future projects. s, with production volumes of typically around 200,000 barrels of oil per day.
- Large conversion SBM Offshore’s historical market. Oil tankers, also known as Very Large Crude Carriers (VLCCs), are converted to s with production capabilities of 60,000 to 150,000 barrels of oil per day. In 2019, SBM Offshore completed the conversion of Liza Destiny, which is designed to produce up to 120,000 barrels of oil per day. s,
SBM Offshore is taking a selective approach to market opportunities in its main segments, with a focus on project execution discipline.
The Company has developed a solid portfolio and business strategy to meet the needs of an evolving energy mix, with a more dominant role for gas. The growing demand for long-distance transportation of natural gas, as well as production of associated gas, is increasing the market for liquefied natural gas () solutions. The Company is developing solutions for the market.
The following segments can be identified in this market:
- Large solutions with a production capacity typically above 3 million tonnes per annum ( )
- Mid-scale 3 solutions ranging between 1 and
- Smaller solutions of <1
The Company is targeting mid-scale 1 million engineering manhours dedicated to .and has developed safe and reliable solutions for both new-build and conversion projects. The Company’s approach is rooted in 20 years of designing, building and operating large offshore gas and liquefied petroleum gas (LPG) projects, as well as numerous (pre-) studies, with more than
Other Gas developments
Given the increasing role of gas and SBM Offshore is carefully assessing its gas and product portfolio to further leverage its experience in the sector. The Company is currently investing in the development of solutions for floating Gas to Wire and Terminals.in the energy mix,
SBM Offshore focuses on two markets for renewable energy production:
- Floating Offshore Wind ( )
- Wave Energy Converter ( )
Both markets are in development and linked to the readiness of innovative technologies.
Floating Offshore Wind
Themarket is developing worldwide, in anticipation of future commercial floating wind farm projects. The Company is focused on developing its first pilot project, leveraging its experience in the design of floating solutions and mooring systems. The aim is to provide the market with an effective solution that can be designed, built and installed on a commercial scale.
Wave Energy Converter
For wave energy, the market is yet to develop and will materialize upon the validation of new technologies. SBM Offshore’s is an example of such new technology. Using electro-active polymers, it brings an effective energy solution with no mechanical components, designed to achieve low Capital Expenditure (CAPEX) and Operating Expenditure (OPEX); therefore a low Levelized Cost of Energy (LCOE). The first pilot project is under development.