The Singapore-based yard carried out the first cut of steel last Friday, the Danish oil company said.

The unit, being built in conjunction with Japanese contractor Modec, is set for completion in the first quarter of 2018.

Sembmarine and Modec confirmed the Culzean FSO job in November last year, although Modec had revealed the award two months earlier. It will have a capacity of 25,000 barrels per day of condensate and storage capacity of 350,000 barrels.

It