Singapore’s Seatrium is exploring collaboration opportunities with Shell in the floating production systems sector.
The initiative, announced on Monday, aims to leverage both companies’ engineering capabilities and technologies, focusing on driving project standardisation and replication, to promote best practices in design and construction.
“Both parties intend to leverage their experience and know-how from previous projects to mature and realise further benefits of replication, tapping on each other’s competencies and technologies and incorporating lessons learned from past projects,” Seatrium said.
Seatrium and Shell have worked together on projects over the years, including the recently announced Sparta floating production unit (FPU).
The Sparta was the third FPU newbuild that Shell awarded to Seatrium following the deliveries of the Vito and Whale FPUs.
An enhanced replication of the two previous FPUs, the Sparta is said to replicate about 95% of Whale’s hull and 85% of its topsides.
Seatrium has identified floating production systems as one of four key areas it plans to target over the next five years in a market it said was potentially worth SGD 500bn ($367bn).
Seatrium said the next few years will be a “golden age” for the supply of floating production, storage and offloading units, with awards for 50 units expected by 2028.
It forecasts capital expenditure on floaters to reach SGD 150bn over the next five years to support offshore oil and gas production.
Seatrium announced this month that it had secured a series of repair and conversion contracts from the offshore, LNG and cruise sectors worth SGD 350m.
In February, it reported a full-year loss of SGD 1.9bn after SGD 2bn in asset write-downs, provisions for contracts, legal and corporate claims and merger expenses.
Seatrium operates facilities in Singapore, Brazil, China, India, Indonesia, Japan, Malaysia, the Philippines, Norway, the United Arab Emirates, the UK and the US.
