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Floating energy: successfully unlocking stranded gas using FLNGs and FSRUs
24 Feb 2026
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South America deepwater projects drive FPSO demand
SBM Offshore and Modec have seen record orderbooks for floating production storage and offloading (FPSO) vessels from energy companies developing giant oil and gas fields in water depths of more than 1,000 m
International oil majors such as ExxonMobil in Guyana, and state-backed energy groups such as Petrobras and Equinor in Brazil, are developing huge resources with subsea wells tied back to FPSOs through networks of flowlines, risers and umbilicals.
SBM Offshore has seen its orderbook surge to new heights for direct delivery and leased FPSOs, while it is also building structures for floating windfarms.
“The increase in our orderbook to a new record level and reiteration of the 2023 guidance underline the fact that our strategy as an energy transition company is delivering results,” said SBM Offshore chief executive Bruno Chabas.
“We are on track to achieve first oil as planned this year on two major FPSO projects. We are progressing the remaining projects under construction and the overall margin remains robust,” he said, although he added these projects are affected by “supply chain and inflationary constraints”.
SBM’s FPSO Prosperity is already in Guyanese waters for an ExxonMobil deepwater project – project teams are completing offshore commissioning activities while the hook-up and installation campaign is progressing.
FPSO Sepetiba has started its voyage to Brazil from the Chinese construction shipyard for a deepwater development after successful completion of the topsides’ integration phase and the onshore commissioning campaign. Both are scheduled to come onstream Q4 2023.
SBM is fully funded for the rest of the known FPSO construction portfolio and fleet operations.
“With the closing of the financing for the FPSO Alexandre de Gusmão in June, financing is now in place for the entire construction portfolio,” said Mr Chabas.
“Including the FPSO Almirante Tamandaré financing, we have secured more than US$3.2Bn so far this year, which is a remarkable achievement in today’s challenging environment.”
On the Almirante Tamandaré project, topsides modules are being lifted onto the FPSO and integrated, with the ship set to be delivered to SBM in 2024 and first oil from the field in early 2025.
For FPSO Alexandre de Gusmão, the modules fabricated in Brazil are being progressively delivered at the shipyard in China and will be installed and integrated during 2024, with first oil expected in 2025.
SBM is also progressing with FPSO One Guyana with topsides fabrication progressing in line with plans and first oil expected in 2025.
“We are on track to achieve first oil as planned this year on two major FPSO projects”
It has two more hulls ordered from the Chinese shipyard for future projects as part of the Fast4Ward programme, with one of these granted exclusivity to ExxonMobil Guyana.
“The lease and operate division continues to deliver solid results, with fleet uptime standing at 99.5% for H1 2023,” said Mr Chabas.
“The new 10-year agreement for the operations and maintenance of our FPSO fleet in Guyana through an integrated operations model with ExxonMobil is delivering impressive operational results. This model establishes a benchmark which can be applied to help other clients maximise value from their developments.”
For Modec, deepwater oil and gas developments worldwide, especially within Latin America, have driven up demand for FPSO projects.
During H1 2023, Modec gained US$7.9Bn in contracts due to the new construction orders, including one obtained for ExxonMobil Guyana’s Uaru FPSO project in the Stabroek block and another for Equinor Brasil Energia to be deployed in the BM-C-33 block off Brazil.
Modec’s revenues in H1 2023 were US$1.6Bn, up from US$1.4Bn in the same period in 2022, while its operating profit was US$49.4M compared with US$38.9M in H1 2022.
“This is due to the revenue recognised from the progress of construction projects and share of profit of investments,” said Modec. “These are accounted for using the equity method, even though the improvement costs incurred for the asset integrity of FPSOs and FSOs operating in Brazil lowered profit.”
The total assets for Modec at the end of June were valued at US$3.2Bn, an increase of US$80.5M from the end of 2022, primarily due to increased cash, equivalents, trade and other receivables.
“The company expects steady demand for the company’s main business of FPSOs, especially in the ultra-deepwater, large-scale projects,” said Modec.
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