While the future of the divisive Cambo field still hangs in the balance a key contract for the project may soon be allocated.

y  Hamish Penman

While the future of the divisive Cambo field still hangs in the balance a key contract for the project may soon be allocated.

Rystad Energy  is speculating that a deal to manufacture a floating production storage and offloading (FPSO) vessel could be dished out this year.

According to information from the analyst&rsquo s sources, Cambo operator Siccar Point Energy is &ldquo likely&rdquo to rubber stamp a letter of intent with Sevan SSP, of Norway, for the engineering, procurement and construction (EPC) of the FPSO.

Sevan SSP is a fully-owned subsidiary of Singapore-headquartered shipbuilder Sembcorp Marine.

It is thought that Siccar Point will move on the plans in order to secure capacity in an increasingly constrained FPSO market.

Recent analysis from Rystad predicted that ongoing supply chain concerns will  &ldquo test the market&rsquo s ability to take in new contracts&rdquo   without delays and cost increases.

Siccar Point  pressed pause  on the project last month a  few days after Shell  opted to pull out of the 800 million barrel field.But Rystad says there are compelling reasons for the company to continue with its plans for the project.

A spokesman said: &ldquo Despite Shell&rsquo s exit, the timing of the FPSO contract in 2022 is speculative given information from our sources that Siccar Point is likely to firm up a Letter of Intent of the FPSO EPC award with Sembcorp and Sevan in 2022 to secure capacity in a very tight FPSO market.

&ldquo This and the maturity of the development plans counterbalances the negative impact of Shell&rsquo s decision.&rdquo