Ithaca Energy and its partners are preparing a tender that will pitch a newbuild floating production, storage and offloading (FPSO) vessel to Asian yards, marking a renewal of interest in full newbuild FPSOs for a major UK North Sea development. Industry sources say the contract is likely to draw strong interest from established Asian shipbuilders with FPSO expertise.
The potential FPSO would serve a high-value North Sea project and is being described by operator briefings as a conventional FPSO design optimized for the field’s technical and environmental conditions. Suppliers say the competition will focus on cost, delivery schedules and local fabrication capability.
Market commentators observe that Asian yards particularly in South Korea, China and Singapore-linked supply chains retain a competitive lead in large offshore new builds due to scale, fabrication experience and integrated supply chains. The upsurge in FPSO demand globally has also nudged yards to re-expand their order books after a period dominated by conversions.
Project timelines from tender to hull delivery will be closely watched; lead times for new build FPSOs remain lengthy, and operators say contract structuring will include rigorous project management and milestone driven payments to limit schedule risk. Analysts note that the contracting choice (convert vs new build) carries implications for delivery speed and lifecycle costs.
If awarded to an Asian yard, the contract could reinforce the region’s status as the go-to source for FPSO construction while also stimulating regional supply chains and engineering services an outcome that would be welcomed by oilfield services players and
by governments seeking skilled-job growth in shipbuilding hubs.