SBM Offshore has secured contracts from ExxonMobil Guyana to carry out front-end engineering and design (FEED) studies for a floating production, storage and offloading (FPSO) vessel for the Longtail development offshore Guyana.
The FEED award triggers the initial release of funds to begin engineering work and allocate a Fast4Ward hull for the project.
SBM Offshore said it is expected to construct and install the FPSO, subject to government approvals, a final investment decision by ExxonMobil and further project approvals.
Under the contracts, ownership of the FPSO is expected to be transferred to the client at the end of construction and prior to start-up of operations in Guyana. Construction costs are expected to be partially financed through senior loans to be repaid upon transfer of the unit.
The company is also expected to operate the FPSO under its integrated operations and maintenance model, combining its expertise with ExxonMobil’s experience and applying operational practices from existing units deployed in Guyana.
The FPSO will be based on SBM Offshore’s Fast4Ward program, using the company’s ninth new-build Multi-Purpose Floater hull with standardized topsides modules.
The vessel is designed to process 1,200 million cubic feet of gas per day and produce 250,000 barrels of condensate per day. It will be spread moored in water depths of around 1,750 metres and will have storage capacity of approximately 2 million barrels of condensate.
The project builds on SBM Offshore’s work on FPSOs Liza Destiny, Liza Unity, Prosperity, ONE GUYANA and Jaguar.
“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,” said Øivind Tangen, SBM Offshore’s Chief Executive Officer.