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SBM Offshore says the offshore industry is increasingly moving away from traditional lease-and-operate contracts toward sale-and-operate arrangements, a shift already evident in Guyana's latest FPSO developments.
Chief Executive Officer Øivind Tangen said one of the biggest changes in the offshore market has been the growing preference for sale-and-operate contracts.
"You've seen over the last couple of years this change from more lease-and-operate to more sale-and-operate," he said recently.
Under the model, SBM constructs the vessel and transfers ownership to the client when it sails from the shipyard, while continuing to operate and maintain the FPSO under a long-term services agreement.
The arrangement is now being used for several of Guyana's newest projects, including FPSO ONE GUYANA and FPSO Jaguar.
Tangen said the shift has attracted new competitors but believes SBM's decades of operational experience continue to provide an advantage.
The shift is significant for Guyana because the country’s FPSO fleet has increasingly reflected this changing offshore business model. Under the traditional lease-and-operate arrangement, SBM Offshore retains ownership of an FPSO and earns revenue by leasing and operating the vessel for the project’s life.
Under the newer sale-and-operate model, the client takes ownership of the FPSO when it leaves the shipyard, while SBM remains responsible for operating and maintaining it under a long-term agreement. FPSO ONE GUYANA and FPSO Jaguar are among the Guyana developments using this model, giving the country a front-row view of a broader change taking place across the global offshore industry.
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