(Yicai) Jan. 17 -- Bomesc Offshore Engineering, a Chinese supplier of marine engineering equipment, signed a deal worth up to CNY1 billion (USD136.5 million) to build a module of a floating production storage and offloading ship for a European client.

Bomesc will design and build the topside module of an FPSO vessel owned by a joint venture between Dutch oil and gas equipment and services giant SBM Offshore and French engineering firm Technip Energies, the Tianjin-based firm announced yesterday.

The contract value will be between CNY750 million (USD102.3 million) and CNY1 billion, with the sum expected to be paid based on variable work contents once the module construction is completed by January 2027, Bomesc noted.

Once fully assembled, the FPSO ship will be delivered to TotalEnergies, which will deploy it for offshore oil exploration off the coast of Suriname.

FPSO vessels, which are moored in fixed positions out at sea for long periods, are involved in oil production and can perform tasks, such as separating oil and gas, cleaning water contaminated with oil, and generating electricity and thermal energy. They also store and transport crude oil and provide accommodation for workers.

Bomesc previously delivered its first fully China-made FPSO vessel along with its topside module to SBM. The firm also cooperated with Technip on multiple marine engineering projects in the past.

Bomesc’s shares [SHA: 603727] closed up 2.4 percent at CNY11.97 (USD1.63) in Shanghai today. The Shanghai Composite Index rose 0.2 percent.

Editor: Futura Costaglione