Setting Course, an ABS Podcast

FPSOs, Innovation and the Next Offshore Frontier With SBM Offshore

• American Bureau of Shipping • Season 1 • Episode 23

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On this special episode of Setting Course, an ABS Podcast, Jean-Charles Rinaldi, SBM Offshore Group Director of Sales and Marketing, and Miguel Hernandez, ABS Senior Vice President of Global Offshore, joined host Brad Cox, ABS, in the ABS booth at the 2025 Offshore Technology Conference in Houston, Texas, to discuss offshore innovation and the future of the floating production storage and offloading (FPSO) sector.

Share this episode with your friends, leave a review on your favorite podcast platform, or send feedback to podcast@eagle.org. Learn more about how ABS is supporting the offshore industry at www.eagle.org.

Key Points

  • The offshore production sector is crucial for meeting global energy demands.
  • Digitalization, including artificial intelligence (AI) and digital twins, is transforming FPSO operations and mitigating risk.
  • Innovative designs can lead to a 70-80% reduction in emissions for new FPSOs.
  • The industry is committed to producing energy responsibly and sustainably.
  • Future FPSOs will have lower carbon intensity compared to previous generations.
  • Partnerships are vital for addressing challenges and advancing technology in offshore energy.

GUESTS

Jean-Charles Rinaldi is the Sales and Marketing Director for SBM Offshore and is responsible for Product Marketing, Business Development, Commercial and Sales activities across the Company. He joined SBM Offshore in 2008 as Concept Engineer, then took roles in Project Construction, Start-up and Commissioning before moving to Operations Readiness and FPSO Operations Management. He later joined the Commercial team and became FPSO Business Acquisition Director in 2020. Jean-Charles has over 15 years of experience in the Oil and Gas Industry, having held positions for SBM Offshore in Europe, the Middle East, China and Brazil. Jean-Charles is a Graduate in Mechanical Engineering from the Ecole Nationale Superieure d’Arts et Metiers, Paristech.

Miguel Hernandez is the Senior Vice President of Global Offshore at ABS, based in the corporate headquarters in Houston, Texas. In his current role, Miguel leads global strategic planning and client development for the offshore energy and offshore wind market sectors, with a special focus on supporting clients in the energy transition to new, greener energy solutions. Miguel has more than 20 years of experience in the oil and gas industry, including expertise in global strategic account management, offshore sales and business development. Prior to joining ABS, Miguel held numerous senior leadership positions at organizations including MODEC, SBM Offshore, and FMC Technologies where he established long term strategic vision, developed new market entry initiatives, and led worldwide account management strategies that strengthen global client portfolios.

Brad Cox (00:07)
Welcome to Setting Course, an ABS Podcast, where we're charting the future of the marine and offshore industries. I'm your host, Brad Cox and today we're recording on the floor at the Offshore Technology Conference in Houston, Texas. And where better to talk about the future of FPSOs and offshore production than right here at OTC.

And we have two very special guests with me today to dig into how the floating production storage and offloading sector is shaping up and where FPSOs are heading into the future. 

First, it's my pleasure to introduce Jean-Charles Rinaldi, Group Sales and Marketing Director for SBM Offshore. It's great to have you with us, Jean Charles. 

Jean-Charles Rinaldi (00:42)
Thank you for receiving us.

Brad Cox (00:44)
It's also great to have Miguel Hernandez, ABS Senior Vice President of Global Offshore with us today. Thank you for joining the show, Miguel. 

Miguel Hernandez (00:50)
Thank you, happy to be here. 

Brad Cox (00:52)
So, let's jump right in here. Jean-Charles, what are the big trends in offshore production this year?

Jean-Charles Rinaldi (00:57)
I think if you look at 2025 from a distance, this is a year where, in our company, we're going to put a lot of production on stream. We're going to put about 650,000 barrels a day of additional production to our fleet. And that's mainly on very large assets, very large FPSOs. So if I were to give you a trend for 2025, it would be large FPSOs are coming on stream. So, we've been designing them, engineering them, building them, but now they're becoming on stream.

Brad Cox (1:27)
Okay, and Miguel what are you seeing from this sector right now? 

Miguel Hernandez (1:31)
I think it's we have a different pivot, right. So, they're delivering FPSOs, we are working with the likes of ABS and the other competitor group on what are the designs that are going into market today and what's going to be coming out in the future so there's a lot of focus on sustainability and understanding digitalization so it's two parts. We're connected to bringing oil on stream in the commissioning phase but there's a lot of discussion on what's the future going to hold.

Brad Cox (01:59)
So I think we can go into a little more detail here. Obviously there's some really fast growing markets for FPSOs, particularly like in South America or in Africa. So why are FPSOs a preferred solution in those areas? Jean Charles? 

Jean-Charles Rinaldi (2:14)
So first, if you look at offshore production, it's about a third of the production globally. So this is not going anywhere anytime soon. So there is a market out there. And then if you look at deep water production, I’d say, or ultra deep water production, those are the regions of interest. If you look at a very large triangle between Brazil, Central America, Guyana, Suriname and West Africa, this is clearly where you see those sweet spots for ultra deep, ultra energy intensive FPSO. That's where you can have low break evens. You can get low carbon intensity on those assets because of that geological gem that we have under our feet there.

Brad Cox (02:54)
And Miguel, from your perspective, what's really driving the FPSO trend in those markets? 

Miguel Hernandez (02:59)
I think I fully support what JC has mentioned. We have in the past four or five years looked at where is energy demand coming, where it's happening, and we have come to the realization as a planet that we all need affordable, reliable energy. And how do we get that? It's hydrocarbon based. The base load is not changing. As JC said, that's going to prevail for a very long time. We're going to add other things in this industry. I think we should get credit for the innovation that it does in lowering and solving challenges. So my point here is we're going to continue to see it and we're going to continue to bring energy to the world, we have to. And so in these areas, exact same places, it's where the concentration is at. 

Brad Cox (03:40)
So pivoting a little bit here, digitalization is certainly a hot topic for industry at large, but there's special interest in offshore energy, you know, artificial intelligence, digital twins, remote control operations, you know, all that's very intriguing. So Miguel, how is digitalization impacting the FPSO sector?

Miguel Hernandez (03:57)
I can give our opinion on it, right? But we have a part of what we do in the digital space is ABS and how we support our clients. JC will have a much broader understanding of what's happening on the top sides and the value they bring to their clients. So on the digital front for asset integrity management, which is where ABS can help, we're embracing what is digital twins, AI for predictive analytics of how do you understand your vessel? How do you minimize maintenance and optimize your efforts when you are offshore, to focus on the areas that need to be addressed. 

Brad Cox (04:30)
And JC, how is digitalization impacting SBM Offshore's operations and what are you guys doing to adapt and implement those innovations? 

Jean-Charles Rinaldi (04:40)
I think if you look at AI, data, digitalization at large, it's impacting all our lives. Why not our work life? So, if we look in our work life, what we're trying to achieve there is actually going beyond what we're doing today. And our offering is, as Miguel said, we're trying to go back to lower break-evens, go back to lower carbon intensity and digitization must be somewhere a tool we use to achieve those goals. If you look, we have a wealth of data. We've all collected data in our industry for the past decades or more. So, what do we do with that data is what matters. So, what we've put in place, we've put what experts would call a data ontology. This is trying to contextualize your data. You map it into a data layer that talks to each other, understands the relationship between the data. And when you have that right, you can scale up. You can multiply this across all your FPSOs. And this is when you can actually deliver value. So there's quite some exciting developments, I would say these days, and we're going to be quite happy to present that soon to the world. It's coming up. 

And if I can add something, it's not only about digitalization, data and AI, but it's about where you get your data. So if you look at the assets we have in Guyana, with the remote con notation we have jointly with ABS, having those remote operational capabilities will multiply as well. How much you can impact the life of the people offshore. What can you avoid doing offshore? It's not like if you have a plant here onshore that you can drive your truck to and do some repairs. Every time we go offshore, there's a lot of risk involved, there's a lot of cost involved, so what can we minimize there? And I think that the work we've done together there is going to be very helpful. 

Miguel Hernandez (06:26)
I'd like to add to that, Neko. I think we should give credit to the advancements that SBM and ExxonMobil have made in digitalization of offshore assets and minimizing and reducing the risk that occurs offshore. Offshore operations by nature are risky operations. And when companies like this and combined with ABS take the steps necessary to understand and innovate, use tools that allow you to have a better understanding of your asset without physically having to go there. That's -- one person is one less person exposed to risk. So, this is one of things that we're very, proud of.

Brad Cox (07:03)
Right, safety is certainly a cornerstone for us at ABS and glad that you brought that up. So, kind of pivoting off of digitalization, you raise the point that that can contribute to more efficient operations. So, part of that is reducing emissions. And so, it's also something that SBM Offshore is working on. So, Jean-Charles, can you tell us a little bit about what you guys are doing around low-carbon FPSO solutions? 

Jean-Charles Rinaldi (07:29)
Yeah, I think I'll do, maybe if you’ll allow a two-step answer there. So, I mentioned earlier that this is a year where we put a lot of assets on stream. When you put an asset on stream, the startup operation is actually very carbon intensive if you don't plan for it properly.

We've put in place a program for quite some years now about flawless startup. So we're reducing the flaring, the emissions that we have on starting all those giant units and the achievements are pretty amazing. From unit to unit we see drastic reduction in the emissions we contribute to and I think there we have operational, tangible achievements that are very material in terms of emission.

And then if you look at more the design phase, what do we do early on on the FPSO? So, yesterday or the day before, I think we presented our approval in principle for our near-zero FPSO. And that's a concatenation of different technological aspects that we can bring together to reduce the emissions 70-80% of what we are doing today. And it's not a dream. It's something that we have jointly with through this AIP, we have a roadmap that is very tangible of what needs to be done for this to be a reality so we can offer this to the market. There's both designing for the future, and then I think we do that very collaboratively with ABS, and then you have also the fact that today we have emissions and we can address those. You just need to take the right steps. It's not mainly technological aspects, it's also the drive and the commitment you have to it. 

Brad Cox (09:01)
I think that kind of answers the question from Miguel as well, but how is ABS supporting SBM Offshore and the industry at large in reducing emissions in offshore operations?

Miguel Hernandez (09:12)
As JC said, right, there are two parts to this. The world wants to, and we have a responsibility to reduce the carbon intensity of the oil we produce. And we have a part of where we say, how do we do that safely, protecting people, the property environment at large? And then there are companies like SBM that come in and say, look, we have worked on a solution. We have a solution that we want to bring to market and we collaborate. We go, look, I like this idea, but you could probably do this differently. How do you do this?

All of sudden we end up at a much better position because they're innovating and we're supporting that innovation making sure that the rules are in place to enable this to go forward ensuring that regulators understand the technologies that are coming and what opportunity those technologies bring forward so it's a partnership. It really is a partnership to decarbonize the offshore industry. 

Jean-Charles Rinaldi (10:03)
And I like the partnership approach this is really what it is you know there's nothing you can do alone in this industry.

Brad Cox (10:09)
So I'm going ask you guys to predict the future a little bit here. How do you see this slice of the industry playing out over the next decade? Not just a matter of what and how much is being produced, but where are the opportunities for growth in offshore production? Jean-Charles? 

Jean-Charles Rinaldi (10:25)
So, the listener will not see me pulling my crystal ball, but this is what I'm doing now. No, think this is where, you know, Miguel just mentioned partnering to support innovation. I think not later than yesterday we signed a memorandum of understanding about innovation and growth. What are those opportunities out there in the blue economy that is a very vast economy? There's a lot of untapped potential. So, we do have a heritage, we do have a history, we understand how to put complex structures in the waters, we do understand how energy efficiency works, how to deliver and put on stream very complex assets. But there's plenty of stuff we don't know.

It's true, there's also many things we do not know and we have to be humbled, I think, the wealth of opportunity we have out there. Just working together with ABS, trying to understand with other industrial partners, what is this area looking like? What can we contribute to with the qualities we have to participate to the growth of this blue economy? 

So we think that the landscape is bright, there's plenty of opportunities out there in terms of innovation and growth. But you know, we need guidance, we need partnering, and we need to do this jointly to make sure that we go in the right direction. 

Brad Cox (11:38)
And Miguel, what do you see in the future for FPSOs?

Miguel Hernandez (11:42)
So, I think it's a slight pivot, right? The majority of the ocean -- of the planet is covered in water. So, the oceans have tremendous opportunity for us as civilization to exploit and make the planet a better place and bring energy from multiple different sources. So, the production sector is going to continue to grow. It's not going away. And I think I'm very quite proud of being involved in lowering the carbon intensity of the barrels that are coming to be produced, the oil that they're bringing online this year, and in the next coming years. 

Those barrels of oil are at a significantly lower carbon intensity than a barrel of oil that was produced five to ten years ago that was brought on stream. Now as we start to look and we go what are other things right there's ammonia there is hydrogen, there is solar, there's wind, there's a lot of other uses that we have in the ocean that partnering together, we're going to continue to do. It's bringing energy to the world.

Brad Cox (12:35)
So, we have a little extra time here, so I'll just go ahead and hit you guys with one more question. Do you have any closing thoughts for our listeners? Maybe one big takeaway you want people to take from this. 

Jean-Charles Rinaldi (12:45)
No, I think I'll just rebound on what Miguel just said. We discuss innovation, we discuss future, but today we're also doing quite amazing stuff. I think we should take pride in what we're doing, and we do. And if you look, there is production today. We are quite proud to produce it in a very responsible manner. We have assets that also achieved the SUSTAIN-2 notation. Very recently, we displayed that last year. So, we're doing it in a sustainable manner and we want to continue doing it. Offshore, deep offshore market is growing about 33% by the end of the decade. So we want to be relevant in that space, but we want to do it responsibly. So I think, to give you the closing words, but what you just said, I think for me, is a key takeaway. Keep doing it, be proud of it, and do it responsibly. 

Miguel Hernandez (13:34)
I appreciate the partnership because there's a lot that's happening in the offshore space, and we do a lot, we collaborate. The key to fixing and moving forward in our industry and bringing energy to the world is collaboration, get engagement early. That's how we do it.

Brad Cox (13:50)
Okay, well, wrapping up here, you know, I want to thank you both again for joining us here at OTC for this special episode. Jean-Charles, a special thank you to you and SBM Offshore for participating. And of course, thank you, Miguel, for providing great insight from the class side. 

Jean-Charles Rinaldi (14:04)
Thank you very much. 

Miguel Hernandez (14:05)
Thank you. 

Brad Cox (14:06)
And for all our listeners, both digital and here in person, thank you for joining us for another episode of Setting Course, an ABS Podcast. To learn more about what's happening in the offshore industry, visit us at www.eagle.org. Thank you for listening.