On March 24, Dutch floating production storage and offloading (FPSO) operator SBM Offshore announced on its official website that it had been awarded a front-end engineering design (FEED) contract by ExxonMobil Guyana, a subsidiary of ExxonMobil, for the FPSO to be deployed at the Longtail development project in Guyana. This is the sixth FPSO project built in cooperation between the two companies.
The FEED contracts award triggers the initial release of funds by ExxonMobil Guyana Limited to begin FEED activities and allocate a Fast4Ward® hull for the Longtail development project in Guyana. SBM Offshore will further construct and install the FPSO, subject to government approvals of the development plan, final investment decision by ExxonMobil, and project approval to release the second phase of work.
Under the contracts, the FPSO’s ownership is expected to be transferred to the client at the end of the construction period and before 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 the client.
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 will design and construct the FPSO using its industry-leading Fast4Ward program using the Company’s ninth new build, Multi-Purpose Floater hull, combined with several standardized topsides modules. The FPSO will be designed to process 1,200 million cubic feet of gas per day and produce 250,000 barrels of condensate per day. The FPSO will be spread moored in water depth of about 1,750 meters and will be able to store around 2 million barrels of condensate.
Building on the experience to date of FPSOs Liza Destiny, Liza Unity, Prosperity, ONE GUYANA and Jaguar, SBM Offshore continues to commit to local content development in Guyana by sourcing fabrication scope locally and integrating Guyanese engineers into the execution and operational teams.
Øivind Tangen, SBM Offshore’s Chief Executive Officer: “We are proud to receive this sixth FPSO award from ExxonMobil Guyana. This project underscores the strength of our Fast4Ward approach and extensive experience in large-scale gas-processing systems. SBM Offshore is well positioned to support the Longtail development, a major gas play demanding the highest gas handling capacity ever deployed on an FPSO. Our teams remain fully committed to supporting the success of this project and ExxonMobil’s long-term energy development strategy.”