France’s energy giant TotalEnergies has made a hull reservation with the Netherlands-based FPSO operator SBM Offshore for a floating production storage and offloading (FPSO) unit, which will be deployed at its oil project in Block 58 off the coast of Suriname.
Following an FPSO hull order by TotalEnergies, SBM Offshore disclosed on June 6, 2024, that it had reserved a Fast4Ward hull for the Block 58 development in partnership with Technip Energies , which is in line with the front-end engineering and design (FEED) studies for the FPSO destined to work on the development project in Suriname.
The B58 development, which is the first one within Block 58 located approximately 150 kilometers offshore Suriname, is operated by TotalEnergies with a 50% interest while APA Corporation holds the other 50%. With a final investment decision (FID) for the project expected in the fourth quarter of 2024, the production start-up is slated for 2028.
Block 58’s two main oil discoveries, Sapakara South and Krabdagu , contain combined recoverable resources of around 700 million barrels in water depths between 100 and 1,000 meters. Recently, TotalEnergies and Staatsolie, which can join the project with up to 20% interest upon FID, agreed on the field development area to maximize the value for Suriname and the Block 58 co-venturers over the 25-year production period.
The FPSO for the project will have a capacity of 200,000 barrels of oil per day (bopd) and the facilities will be designed for zero routine flaring, with all associated gas reinjected into the reservoirs, to curb the greenhouse gas (GHG) emissions footprint.
The deal with TotalEnergies comes shortly after SBM Offshore got a hold of a $250 million term loan facility to finance the construction of the FPSO Jaguar for which the Dutch player secured a deal with ExxonMobi l to undertake FEED work.