Chockalingam Kasi’s Post

The company said this 19% increase reflects mainly the Jaguar floating production storage and offloading (FPSO) contract award and the increased support to the fleet through brownfield activities. These were partially offset by the completion of FPSOs Prosperity and Sepetiba in Q4 2023 and Q1 2024 respectively, and the lower amount of revenue booked in the construction portfolio as projects approach completion. The year-to-date Directional Lease and Operate revenue stood at US$1,178 million, up 26% compared with the same period in the prior year. This increase is the result of FPSOs Prosperity and Sepetiba joining the fleet upon successful delivery in Q4 2023 and Q1 2024 respectively. It is also a result of an increase in reimbursable scope of the fleet, partially offset by reduced revenue on FPSO Liza Unity following purchase option exercised by ExxonMobil Guyana in Q4 2023, moving to an operating contract.

💼 The traditional lease and operate model for floating production, storage, and offloading (FPSO) vessels is facing pressure due to a lack of competitors and the growing size, cost, and complexity of projects, according to Marco Beenen, CEO of BW Offshore. 🛢️ There is an increasing trend towards oil company-owned FPSOs, where the clients finance the FPSO themselves, as opposed to the lease and operate model. This shift is driven by the rising costs and complexity of projects, making it harder for FPSO contractors to finance projects solely through the lease and operate model. 🌊 As a result, there's a growing preference for engineering, procurement, construction, and installation (EPCI) plus O&M models. BW Offshore is selectively pursuing opportunities, focusing on risk reduction through joint ventures and smaller projects. Additionally, as seen over the years, the FPSO market faces challenges such as low responses to tenders and limited active players capable of bidding for major projects.

As lead times at fabrication yards across key regions lengthen, Guyana’s prominence in the FPSO (floating production, storage and offloading vessel) market grows, fueled by major ExxonMobil-led developments. https://lnkd.in/e7m3kiRg

⚓📄 Asian contractors are eagerly preparing for Petrobras’ upcoming tender for the P-86 FPSO, set to enhance operations at Brazil’s Marlim Sul and Marlim Leste fields. Having pre-qualified 18 global contractors, Petrobras is set to launch the bid in late September 2024. The P-86 FPSO will operate under an EPC (engineering, procurement, and construction) model, a departure from previous lease-and-operate deals. Major players like China’s COOEC, Singapore’s Seatrium, and South Korea’s Hanwha Ocean are among the six Asian contractors expected to bid, with potential partnerships emerging to strengthen their positions. 🏗️🚢 Petrobras’ move comes after awarding Seatrium an $8.15 billion EPC contract for the P-84 and P-85 FPSOs earlier this year. However, COOEC’s withdrawal from the P-84 tender due to local content issues has forced Petrobras to renegotiate terms with Seatrium. This shift highlights Petrobras’ strategic pivot from lease-and-operate to EPC contracts, with companies like Malaysia’s Yinson Production and European firms SBM Offshore and Saipem preferring to sit out the upcoming EPC bid due to their focus on lease-based contracts. 🌊💰 The Marlim Sul-Marlim Leste FPSO is expected to surpass previous projects in processing capacity, featuring modules capable of handling 140,000 barrels of oil and 6 million cubic meters of gas per day. First oil from the P-86 is anticipated by 2029, marking a significant step in Petrobras’ revitalization efforts in the Campos Basin. With a processing capacity larger than previous FPSOs, the P-86 FPSO tender reflects Petrobras’ strategic shift and commitment to enhancing Brazil’s energy production.

🚢💼 BW Offshore's CEO Marco Beenen revealed during a results conference call that BWO is eyeing four major contracts, though the complexity of the FPSO market, cost inflation, and financing capabilities make finalizing these deals uncertain. 🇹🇷🛠️ The first is the Sakarya project in Turkey for Turkish Petroleum, involving an engineering procurement and construction management (EPCM) Contract for the Opportunity FPSO upgrade, which BWO previously sold to Turkish Petroleum, which Beenen hopes to be finalized within 2024. 🇲🇽🌊 The second project is Repsol’s Polok and Chinwol discoveries in Block 29 offshore Mexico, where BWO is working on a front-end engineering and design (FEED) contract, but it's too early to predict when this might turn into a full contract. Repsol has an exclusivity agreement with BWO for the OSX-1 FPSO facility. ⏳🔧 Lastly, BWO is pursuing two gas-related FPSO projects but has not disclosed details, but emphasises the strategic focus on leveraging its position with the Barossa gas FPSO, one of the largest in the world.

Here are some upcoming FPSO projects: Petrobras/Atapu FPSO 2/Sepia FPSO 2 Petrobras and its partners are developing two new FPSOs in the Atapu and Sepia fields in Brazil. The new FPSOs are expected to increase production capacity by about 450 MBbl/d and cost over $10 billion. The first oil from the new units is expected between 2029 and 2030. Total Energies/ Kaminho Total Energies announced FID on the Kaminho FPSO project in Angola. This project is expected to add 70 MBbl/d of production capacity and cost around $5.5 billion. ExxonMobil's Whiptail project SBM Offshore secured a contract to perform front end engineering and design (FEED) for the FPSO Jaguar, which will work on the Whiptail project offshore Guyana. The FPSO is designed to produce 250,000 barrels of oil per day and has a storage capacity of 2 million barrels of oil. Work on the project is expected to begin in the third quarter of 2024. #Futureprojects #fpso #investment #contract #offshore #epc

ExxonMobil’s Uaru and Whiptail projects are each targeting an initial production range of 220,000-275,000 barrels per day (b/d), according to a document distributed at the company’s recent public meeting in Georgetown. Uaru and Whiptail are the fifth and sixth oil projects at the Stabroek Block offshore Guyana. They will utilize the Errea Wittu and Jaguar floating production, storage and offloading (FPSO) vessels, to be delivered by MODEC and SBM Offshore. The upper production targets of these vessels would place them among the highest producing FPSOs in the world.

MODEC Reports 657% Year-On-Year Profit Boost In First Quarter MODEC reported US$71 million profit in the first quarter of 2024, a 657.1% increase from the US$9.4 million profit from the prior year quarter. ExxonMobil hired MODEC last year to deliver the Errea Wittu FPSO for the Uaru project offshore Guyana. The order was MODEC’s highest earning engineering, procurement, construction and installation (EPCI) contract in 2023, beating out Equinor’s Raia and Bacalhau. It is expected to be a key contributor to MODEC’s 2024 earnings. Read article here: https://rb.gy/brj57k #MODEC #Guyana #first #quarter #financial #report #Uaru #FPSO #construction #delivery #boost #profits

MODEC Reports 657% Year-On-Year Profit Boost In First Quarter MODEC reported US$71 million profit in the first quarter of 2024, a 657.1% increase from the US$9.4 million profit from the prior year quarter. ExxonMobil hired MODEC last year to deliver the Errea Wittu FPSO for the Uaru project offshore Guyana. The order was MODEC’s highest earning engineering, procurement, construction and installation (EPCI) contract in 2023, beating out Equinor’s Raia and Bacalhau. It is expected to be a key contributor to MODEC’s 2024 earnings. Read article here: https://rb.gy/brj57k #MODEC #Guyana #first #quarter #financial #report #Uaru #FPSO #construction #delivery #boost #profits

🌞 Good Morning, Readers! 🌞 As I read the latest updates on the Malaysian oil and gas sector, I came across some thrilling news that promises to invigorate the industry with new opportunities. If you’re looking for an exciting start to your day, this update on Malaysia's double Floating Production Storage and Offloading (FPSO) opportunity is a must-read! 📈⚓️ In Malaysia, the oil and gas industry is buzzing with excitement as it gears up for a significant development phase. The country is poised to enter the bidding phase for not one, but two FPSO units. This double FPSO opportunity is a significant milestone that highlights Malaysia’s commitment to expanding its offshore capabilities and enhancing its production capacity. 🛳️🔧 The upcoming projects involve deploying these FPSOs to strategically important oil fields, which are expected to boost the nation's hydrocarbon output substantially. The bidding process for these FPSOs will attract major global players, indicating a competitive landscape that could lead to innovative solutions and cutting-edge technology in the offshore sector. 🌍🏗️ This move not only underscores Malaysia's strategic focus on maximizing its offshore resources but also reflects the broader trend of increasing investments in oil and gas infrastructure in Southeast Asia. The double FPSO projects are set to play a crucial role in meeting the region's growing energy demands and contributing to its economic growth. 🌟💼 For more detailed information on Malaysia’s double FPSO opportunity and what it means for the future of the region's oil and gas industry, click the link below. Dive into the full story and discover how these developments are set to shape the landscape of offshore energy production! 🌐📖 #GoodMorning #Malaysia #FPSO #OilAndGas #EnergySector #OffshoreDevelopment #EconomicGrowth #GlobalEnergy #OilProduction #IndustryNews #BiddingPhase #Hydrocarbon #EnergyProjects #InvestmentOpportunities #SoutheastAsia #InnovativeTechnology #FutureOfEnergy #OffshoreExploration #ResourceExpansion #EconomicBoost https://lnkd.in/gvV5wjgd