Exxon Mobil Selects SBM Offshore for FEED Work on Guyana FPSO

Deep News03-24

SBM Offshore, a Dutch offshore oil and gas service company, has secured a contract from ExxonMobil Guyana to conduct Front-End Engineering and Design (FEED) studies for a Floating Production, Storage, and Offloading (FPSO) vessel for the Longtail development project offshore Guyana.

The award of this FEED contract initiates the project's preliminary funding allocation, which will be used to commence engineering work and assign a Fast4Ward hull to the project.

SBM Offshore indicated that it is expected to be responsible for the construction and installation of the FPSO, pending government approvals, ExxonMobil's final investment decision, and further project authorizations.

According to the contract, ownership of the FPSO is anticipated to be transferred to the client upon completion of construction and prior to the start of operations in Guyana. Construction costs are expected to be partly financed through senior loans, which will be repaid after the vessel is handed over.

The company also expects to operate the FPSO under its integrated operations and maintenance model, combining its own expertise with ExxonMobil's experience and applying operational practices from FPSOs already deployed in Guyana.

The FPSO will be based on SBM Offshore's Fast4Ward program, utilizing the company's ninth new-build multi-purpose hull and equipped with standardized topside modules.

The vessel is designed to process 1.2 billion cubic feet of gas per day and produce 250,000 barrels of condensate per day. It will employ a catenary mooring system and be deployed in water depths of approximately 1,750 meters, with a condensate storage capacity of about 2 million barrels.

This project builds on SBM Offshore's previous work on FPSOs such as Liza Destiny, Liza Unity, Prosperity, ONE GUYANA, and Jaguar.

SBM Offshore CEO Øyvind Tangen stated, "We are proud to be awarded this sixth FPSO project by ExxonMobil Guyana. This project highlights the advantages of our Fast4Ward program and our extensive experience in large-scale gas processing systems. SBM Offshore is fully equipped to support the Longtail development, a significant gas project with unprecedented gas processing requirements for an FPSO."

"Our team remains fully committed to supporting the success of this project and ExxonMobil's long-term energy development strategy."

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