Critical talks between SBM Offshore and Modec are ongoing regarding the construction of Sapakara South-Krab Dagu project’s hull, and topsides for a floating production, storage, and offloading vessel. Located in Suriname, the project, costing $9 billion is said to be owned by a petroleum giant TotalEnergies.
An engineering, construction, and procurement contract would be obtained next year by one of the two FPSO giants. The contract winner will provide Suriname’s inaugural deep-water project with 200,000-barrel-per-day FPSO. The two are currently locked in a design contest.
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SBM and Modec are said to be evaluating their best technical and also commercial alternatives. This is part of their pre-front end engineering as well as design studies. The companies are exploring yards in China suitable for building FPSO hulls and topsides.
According to the contractor, Modec and CIMC Raffles, a Chinese yard, have also partnered to carry out the FPSO project. No other collaborations are understood to be taking place with the Japanese floating expert to execute the project. A bid process has been initiated by SBM, a Dutch contractor to identify a yard where the hull will be built.
Who are the contenders for the contract?
China Merchants Heavy Industry (CMHI), and Shanghai Waigaoqiao Shipbuilding (SWS), are among the contenders for the contract. They have also been designated as contractors by SBM to construct FPSOs. The work will be carried out under the company’s Fast4Ward generic hull design programme.
Currently undertaken by CMHI, it is said that for its Suriname project, SBM has shown interest in offering to its Multi-Purpose Floater C, the third hull under the Fast4Ward strategy.
The first oil is expected to flow from TotalEnergies’ project in 2027. However, there are concerns that other projects in the backlog of the yard’s may be adversely affected by the presence of the FPSO’s in CMHI’s dock for an approximate two years. It is said that the Multi-Purpose Floater C hull will be delivered next year by CMHI.
The backup yard for the Sapakara South-Krab Dagu project
SWS is said to be the backup yard for the project in Suriname just in case SBM’s offer is declined by CMHI.
According to market observers, SBM and SWS are holding talks for the construction of SBM’s next Fast4Ward FPSO. Referred to as MPF 6, there are chances it could be earmarked for the Suriname project.
In preparation for bidding, SBM and Modec began pre-front end engineering as well as design studies on the FPSO. It will generate oil from Sapakara-Krab Dagu.
In mid-September, TotalEnergies and US independent APA Corporation, collaborating to deliver the Block 58 project, initiated development studies for the costly oilfield endeavor.
For the end of 2025, the last investment decision has been targeted for the Sapakara South-Krab Dagu complex, with a 700 million barrel.
Approximately 150 kilometers from the coast of Suriname, the suggested FPSO will be connected to the subsea wells in water. The waters will also have depths starting from 100 up to 1000 meters.
