SBM Offshore Secures Fifth FPSO Contract in Guyana
Dutch firm SBM Offshore said Friday it had won contracts to perform front-end engineering and design (FEED) for a floating production, storage, and offloading vessel (FPSO) for the ExxonMobil-led Whiptail development project in Guyana.
Following FEED and subject to government approvals in Guyana of the development plan, and project sanction, including the final investment decision by ExxonMobil, to release the second phase of work, SBM Offshore will construct and install the FPSO.
The FEED contract award triggers the initial release of funds by ExxonMobil to begin FEED activities, and commits a standardized Fast4Ward hull for the execution of the Whiptail development project in Guyana.
Under the contracts, SBM Offshore will transfer the FPSO ownership to ExxonMobil at the end of the construction period, and before the start of operations in Guyana.
The construction costs are expected to be partially funded by senior loans which will be repaid at the time of the FPSO’s transfer to ExxobMobil.
"SBM Offshore is expected to operate the FPSO through its integrated operations and maintenance model, combining SBM Offshore and ExxonMobil’s expertise and experience, leveraging key learnings and the operational excellence of the units currently deployed in Guyana," SBM Offshore said.
SBM Offshore will design and construct the FPSO using its Fast4Ward program using the company’s seventh new build, Multi-Purpose Floater hull, combined with several standardized topsides modules.
The Fast4Ward program includes a new build, multi-Purpose Floater hull combined with several standardized topsides modules. SBM Offshore orders these hulls in China without contracts secured, so that when it does secure a contract, the FPSO delivery time is shorter.
The FPSO will be designed to produce 250,000 barrels of oil per day, will have associated gas treatment capacity of 540 million cubic feet per day and water injection capacity of 300,000 barrels per day. The FPSO will be spread-moored in a water depth of about 1,630 meters and will be able to store around 2 million barrels of crude oil.
This would be the fifth FPSO to be delivered SBM Offshore for Exxon-led consortium in Guyana, after FPSOs Liza Destiny, Liza Unity, and Prosperity, all currently in Guyana, and yet to be delivered ONE GUYANA.
Bruno Chabas, SBM Offshore’s Chief Executive Officer: "We are proud to announce ExxonMobil Guyana has awarded the contracts for a fifth FPSO from SBM Offshore in Guyana. This project demonstrates once more the value that our industry-leading Fast4Ward program brings to our clients and other stakeholders while delivering carbon efficient energy to the world.”
While this will be the fifth SBM Offshore FPSO to be delivered for Exxon in Guyana, it will be the sixth FPSO at the Exxon-operated Stabroek block.