SBM Offshore's Group Business Development Director, Pierre Morin, characterizes the current deepwater market as very strong, driven by sustained investment from major operators and a growing focus on ultra-deepwater exploration. This momentum translates into a heavy current workload and a promising future, with significant spending in basins on both sides of the Atlantic, particularly South America and West Africa. The economics of deepwater projects are proven, with competitive breakeven prices and CO2 emissions, unlocking potential in established and new countries.

Regional Drivers of Project Awards

South America leads the next cycle of project awards, with Brazil at the forefront due to regular project awards from Petrobras over two decades. Guyana follows, where SBM has deployed four FPSOs for ExxonMobil, with another under construction and more under discussion. Suriname is emerging as a new country for oil and gas, with a project from TotalEnergies and ongoing exploration. On the other side of the Atlantic, West Africa is becoming dynamic, especially Namibia, which mirrors Guyana's early stages with promising exploration and active tenders. Established countries like Angola, Nigeria, and the Ivory Coast are also seeing renewed activity due to recent discoveries, bringing optimism to development projects.

Trends Shaping Next-Generation FPSOs

Next-generation FPSO concepts are shaped by increasing complexity, including deeper water depths, higher production throughput, and a growing proportion of gas in produced fluids. This complexity challenges engineers in design. ESG expectations increasingly influence early-stage project discussions, making decarbonization critical. SBM integrates ESG priorities through standardization to avoid reinventing the wheel, freeing engineers for important topics. Initiatives include deploying all-electric equipment instead of gas-driven compressors, closed flare systems to minimize flaring, and deepwater suction risers for more efficient cooling. A modular carbon capture solution is ready for deployment upon client request but is currently at the study stage.

Digitalization and Performance Optimization

Digitalization and energy transition are transforming how SBM manages deepwater FPSO assets, focusing on pairing safety with maximum uptime. SBM teams with Cognite to collect and intelligently use data for predictive maintenance, and with SLB for a full understanding from well to topside to improve uptime, safety, and efficiency, including CO2 emissions. Technology also supports replacing human intervention in hazardous areas, such as tank inspection and underwater operations, with robots, drones, and remotely operated vehicles, enhancing safety.

Approach to Local Content

SBM evolves its approach to local content by capitalizing on accumulated experience, starting with expats in key positions but gradually transferring to local resources and maximizing in-country supply chains. This strategy helped when entering new countries like Mexico, Suriname, and Namibia. Early engagement in training local talent begins long before an FPSO arrives in country. In Brazil, over 90% of employees are Brazilian nationals, and this experience was successfully applied in Guyana, where a shore base, training center, and local supply chain relationships were established. SBM shares this proof of concept with clients and authorities in new countries.

Long-Term Strategic Priorities

SBM's long-term strategy rests on two pillars. The first is advancing the core business of FPSOs, focusing on continuous improvement through lessons learned and standardization to deliver schedule and cost certainty. The second is pioneering more, looking beyond FPSOs to future energy solutions, such as nuclear power barges or blue ammonia. This involves selective collaboration with partners who have prior experience, rather than attempting to do everything alone, to add value in emerging energy areas.