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Solstad Offshore ASA and SBM Offshore have formed a joint venture to order a next generation multipurpose deepwater installation and construction vessel, with delivery targeted for the first half of 2029, extending a partnership that has spanned more than two decades.
The two companies have entered into a Letter of Intent with an undisclosed shipyard for the newbuild, which will support the installation of ocean infrastructure including floating production storage and offloading units, known as FPSOs. Solstad Offshore will hold a 50.1% ownership interest in the joint venture with SBM Offshore retaining the remaining 49.9%.
Long-Term Charter Anchors the Deal
The joint venture has secured an initial 14-year charter agreement with SBM Offshore, guaranteeing a minimum utilization of 270 days per year. SBM Offshore holds options to extend the charter within each year as well as for up to 11 additional years beyond the base term. When the vessel is not committed to SBM Offshore operations, the joint venture may charter it to third parties, providing a potential secondary revenue stream.
Solstad Offshore will act as ship manager. The arrangement mirrors the governance structure the two companies have applied successfully since 2006, when they jointly acquired the CSV Normand Installer, a vessel that continues to operate under their shared ownership. The existing frame agreement for the Normand Installer has been extended, giving SBM Offshore continued access to that vessel through 2034.
Lars Peder Solstad, Chief Executive Officer of Solstad Offshore ASA, described the transaction as a strategic step forward.
“This project represents an important strategic step for Solstad Offshore. Together with SBM Offshore, we are further developing a partnership that has evolved over more than two decades, building on the proven performance of Normand Installer and extending our installation capabilities into the future,” he said.
Vessel Design Targets Shallow and Deepwater Work
The new vessel is described as featuring an optimized design capable of installing ocean infrastructure across both shallow and deepwater environments. SBM Offshore has indicated the vessel will enable the company to maintain its full lifecycle EPCIC offering, a term covering engineering, procurement, construction, installation, and commissioning services, and to integrate a broader range of offshore installation work scopes under a single operational unit.
The company said the newbuild is expected to improve delivery reliability and enhance the predictability of its EPCIC schedule and cost, reducing execution risk for clients.
SBM Offshore positions itself as a global leader in deepwater ocean infrastructure, operating a long-term asset-backed business model with a workforce of more than 8,000 professionals. Its core product line centers on FPSOs and other floating production solutions across the full asset lifecycle. The company has publicly linked the new vessel to its ambition to contribute to a sustainable blue economy through ocean infrastructure development.
Implications for the Offshore Installation Market
The order adds to a growing pipeline of specialized offshore construction vessel capacity being contracted globally as energy companies accelerate deepwater development programs. A guaranteed minimum of 270 utilization days per year over 14 years provides a foundation of long-term revenue visibility that is increasingly sought by vessel owners operating in capital-intensive segments of the offshore market.
The deal also signals continued confidence in the FPSO installation sector at a time when project pipelines in deepwater basins across West Africa, Brazil, and Southeast Asia remain active. For Solstad Offshore, retaining the majority stake and the ship management role reinforces its positioning as a provider of complex offshore support and installation capacity, a segment that has tightened considerably in recent years.
No shipyard name, vessel specification details beyond its multipurpose deepwater capability, or contract value has been disclosed by either party at this stage.
