SWS and No.708 Research Institute, both subsidiaries of CSSC (China State Shipbuilding Corp), will collaborate on the SBM Fast4ward FPSO project, under which SBM Offshore has contracted SWS to convert a VLCC into a FPSO.
In April this year, SBM Offshore shortlisted SWS and China Merchants Heavy Industry to bid for the FPSO conversion deal, with SWS winning the contract last month.
The Chinese shipyard said its last FPSO project was a decade ago in 2007 for client ConocoPhillips.
The SBM Offshore 300,000-dwt FPSO, to be deployed to the Liza oilfield in Guyana, will be designed to produce up to 120,000 barrels of oil per day and able to store 1.6m barrels of crude oil.
The financial details and project completion date were not disclosed.