2002 Annual Report - SBM Offshore

The monocolumn for the Matterhorn TLP, under tow
in Singapore.
The LPG and LNG markets
With its success in obtaining an eight-year lease and
operate contract for the Sanha LPG FPSO, the Group has
reinforced its position as one of the leading companies in
the supply of gas exploitation facilities. This contract
creates a benchmark in the LPG segment, where it is
expected that demand will grow considerably in the
coming years.
It is clear that global demand for LNG is going to
increase, and export/import infrastructures are already
being planned in the USA, Europe and South East Asia.
In this segment, the two offshore developments which
were expected to start in 2002 did not materialise. The
project for Kudu in Namibia was suspended due to
insufficient reserves, while the Sunrise project in
Australia was postponed for political reasons.
Nonetheless, a global demand for LNG infrastructures is
An artist’s view of the SYMO ® technology applied to
LNG floating plant for tandem loading of gas carriers.
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expected to emerge soon. The objectives of IHC Caland in
the LNG market are as follows:
x to supply key, specialised components such as Soft
Yoke Moorring and Offloading systems (SYMO ® ),
turrets, swivels and mooring systems for floating LPG
and LNG plants. It is most likely that the construction
of such plants will be managed by the oil majors
themselves, as they represent multi-billion dollar
facilities;
x to design and construct LPG and LNG FSO’s, and LNG
Floating Storage and Regasification Units (FSRU’s).
Here the Group will target the complete supply of the
facility, possibly on a lease basis, as the contract value
is similar to that of a mid-size oil FPSO. If turnkey
supply is not required, the supply of key components
will be pursued;
x to supply mooring and transfer systems for loading
and unloading terminals – always on a lumpsum,
turnkey basis.
Marketing efforts to promote the Group’s technology
have already started, on the basis described above.
SBM’s concept for a floating regasification plant (FSRU);
an import terminal for liquefied natural gas.
The Gulf of Mexico
In previous reports, IHC Caland expressed its doubts
about the highly optimistic predictions made by the
press concerning FPSO’s in the Gulf of Mexico, as it was
convinced that demand for FPSO’s would get off to a
slow start. While last year’s Annual Report suggested that
there might be opportunities in 2002, no serious project
is yet on the horizon. With E&P budgets in the USA being
reduced, it remains to be seen whether 2003 will bring a
real project. The requirement that all associated gas has
eventually to be produced, and the fact that the Jones Act
requires all shuttle tankers (not the FPSO) to be built in
the USA are major economic obstacles. Business
opportunities in the Gulf of Mexico will certainly not
influence the future growth of the IHC Caland FPSO
business in the short term.