Annual Report 2010 - SBM Offshore

At the start of 2010, the Company owned a total of
fourteen production and/or storage systems with longterm
lease and operate contracts on charter, with an
additional three facilities under construction as well
as one facility (FPSO Falcon) laid up. In addition, the
Company had three operate-only contracts for clientowned
units.
All units in operation performed well during the year
at a cumulative average throughput rate around 0.92
million barrels of oil per day, performing more than 460
export operations for a total volume circa 336 million
barrels of oil.
The operations on all units are managed and executed
under strict Health, Safety, Security and Environmental
(HSSE) regulations and operating standards. Records
are carefully kept of all incidents and the overall offshore
safety record for the year was good compared to
the industry average. The organisation of HSSE management
has grown and been decentralised across the
three operating sub-divisions of Brazil, Angola and the
Rest of the World to meet growing fleet requirements,
a broadened scope and geographical concentrations.
Information on HSSE can be found in the SBM Offshore
Sustainability Report 2010.
Total production up-time of the fleet was maintained at
99%. This high up-time remains the basis for the payment
of performance incentive bonuses, in particular
for the units operating under long-term contracts with
Petrobras, Chevron and ExxonMobil; the latter two
including bonus schemes taking into account not only
the production performance but also safety and environmental
metrics and operating budget compliance.
Portfolio development
Resulting from the developments during the year within
the lease portfolio, at the end of the year the Company
owned a total of fourteen production and/or storage
systems with long-term lease and operate contracts
on charter, with an additional five facilities under construction
as well as one facility (FPSO Falcon) laid up.
Furthermore, the Company has four operate-only contracts
for client-owned units.
At year end the Company also owned four hulls
(two VLCCs, one Suezmax and one Aframax), which
are available as inventory for conversion projects in
the future.
Including the hulls, the Company maintains full or partial
ownership of twenty-four of the twenty-eight assets
under management.
Production facilities
Brazil
Report of the Board of Management
FPSO Capixaba
The FPSO Capixaba sailed from Singapore for deployment
on the Cachalote field, offshore Brazil in February
after conversion works and the addition of new modules
in the Keppel shipyard in Singapore. The unit was
delivered two weeks ahead of schedule and achieved
first oil in May; it is under a twelve-year lease and operate
contract with Petrobras.
FPSO Espadarte
In August a new eighteen-year lease and operate contract
was signed with Petrobras for the relocation of
the FPSO Espadarte on the Baleia Azul field. During the
first half of 2011, FPSO Espadarte will be disconnected
from its current location at the Espadarte field offshore
Brazil, and after transfer to a shipyard, the FPSO will
be modified and upgraded for the new project. It will
then be transferred back to Brazil for offshore hook up,
installation and operation on the Baleia Azul field. The
disconnection of the FPSO from the Espadarte field is
planned in April 2011 and first oil at the Baleia Azul field
is planned in the second half of 2012.
FPSO Cidade de Paraty
In May, a Letter of Intent from Petrobras Netherlands
B.V. and Petroleo Brasileiro S.A. – Petrobras as
Operator of the Consortium BM-S-11 was received for
a twenty-year lease and operate contract for the FPSO
Cidade de Paraty for the Lula Nordeste development in
the pre-salt area offshore Brazil.
The Lula Nordeste field is located in block BM-S-11
in the Santos Basin approximately 265 kilometres offshore
and in 2,100 metres water depth. The FPSO will
include topside facilities to process 150,000 barrels per
SBM Offshore – Annual Report 2010 57