Equatorial Guinea: SBM Offshore Divests FPSO, Ceases Operations
In 2024, SBM Offshore made a major decision. It ended all its work in Equatorial Guinea. This included giving up control of its Floating Production Storage and Offloading (FPSO) unit. The Serpentina FPSO, a vital asset in oil production, has been transferred to GEPetrol, the state-owned oil company of Equatorial Guinea.
This is big news for the region. SBM Offshore was an important part of Equatorial Guinea’s offshore oil production for many years. It helped run major projects and supported the country’s energy growth. But now, situations are changing. We see a clear shift in strategy. The company wants to focus more on safer and more profitable markets like Brazil and Guyana.
At the same time, Equatorial Guinea must now take more control of its oil fields. That sounds promising, but also brings risks. Running an FPSO is not easy. It needs skill, planning, and investment.
Let’s explore why SBM Offshore left, what this means for Equatorial Guinea, and what’s next for both sides. Let’s break it down together.
Background on SBM Offshore’s Operations in Equatorial Guinea
SBM Offshore had a longstanding presence in Equatorial Guinea, primarily through its operation of FPSO units like Serpentina and Aseng. These units played a crucial role in the country’s offshore oil production, contributing significantly to its economy.
The partnership between SBM Offshore and GEPetrol facilitated the development of the nation’s oil infrastructure and expertise.
Divestment and Cessation of Operations Details
In June 2024, SBM Offshore officially handed over the operations of FPSO Serpentina to GEPetrol, marking the end of its activities in Equatorial Guinea. This decision aligns with SBM Offshore’s strategic focus on core lease and operating activities in regions with more stable operational environments.

The transition signifies Equatorial Guinea’s move towards greater national control over its oil production assets.
Factors Influencing the Decision
Some of the important factors influencing SBM Offshore’s decision to exit Equatorial Guinea:
- The company faced complex legal and political issues, including the conviction of two South African offshore workers associated with SBM, who were sentenced to 12 years in prison under contentious circumstances.
- SBM Offshore is redirecting its focus towards regions with higher growth potential and more stable operational environments, such as Brazil and Guyana.
Implications for Equatorial Guinea
The SBM Offshore exit presents both challenges and opportunities for Equatorial Guinea:
- The departure could affect employment and revenue from the oil and gas sector, which is a significant contributor to the nation’s economy.
- GEPetrol’s takeover of FPSO operations signifies a move towards greater national control over oil production. However, this transition requires substantial investment in capacity building and operational expertise to maintain efficiency and productivity.
SBM Offshore’s Global Strategic Shift

SBM Offshore leaving Equatorial Guinea is not just a single decision. It’s part of a bigger plan. The company is now focusing on safer regions with better profits and fewer risks.
- The company has been actively divesting assets in various regions, such as the sale of a 13.5% stake in FPSO Sepetiba to China Merchants Financial Leasing.
- SBM Offshore is concentrating on its core lease and operating activities, aiming to streamline operations and focus on markets with higher returns and lower risks.
Future Outlook for Equatorial Guinea’s Oil Sector
Equatorial Guinea faces a critical juncture in its oil sector. With SBM Offshore’s exit, the country may pursue greater nationalization of its oil sector, potentially leading to increased control but also necessitating capacity building.
The government may need to implement policies to attract new foreign investments to sustain and grow its oil and gas industry.
Final Words
SBM Offshore leaving Equatorial Guinea is a major shift for the country’s offshore oil industry. Now, the government must take charge of this change. Success will depend on how well it handles the transition.
The country also needs to build strong partnerships with new oil companies. Without expert help and investment, it may face delays in oil production. But with good planning and the right support, Equatorial Guinea can still grow its energy sector in the future.
Frequently Asked Questions (FAQs)
SBM stands for “Single Buoy Moorings.” It started as a company making mooring systems. Now, it works in offshore oil and gas production worldwide.
SBM Offshore works in many countries. It has projects in Brazil, Guyana, Angola, and Malaysia. It builds and runs floating oil units in deepwater areas.
SBM Offshore is based in the Netherlands. Its main office is in Amsterdam. It works globally but is officially a Dutch company.
As of 2025, Bruno Chabas is the CEO of SBM Offshore. He has led the company for many years and focuses on safety and energy growth.
Disclaimer:
This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.