SBM Offshore has secured contracts from ExxonMobil Guyana for front end engineering and design (FEED) studies related to a floating production, storage and offloading vessel (FPSO) for the Longtail project in Guyana.
These contracts awarded by the ExxonMobil subsidiary initiate the release of funds to start FEED activities and designate a Fast4Ward hull for the development.
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The FPSO is designed to handle up to 1.2 billion standard cubic feet (bscf) of gas per day and produce approximately 250,000 barrels per day (bpd) of condensate.
It will be spread-moored in approximately 1,750m of water and provide roughly two million barrels of condensate storage capacity.
Following governmental consent for the development plan, ExxonMobil’s final investment decision will dictate further construction and installation of the FPSO.
Upon completion of construction, ownership of the FPSO will be transferred to ExxonMobil prior to operational commencement in Guyana.
Senior loans are expected to cover part of the construction expenses, which will be settled when the FPSO is transferred.
SBM Offshore plans to operate the FPSO through a collaborative operations and maintenance model with ExxonMobil, making use of mutual expertise and lessons learned from existing operations in Guyana.
The company will utilise its Fast4Ward programme to design and construct the FPSO, incorporating the ninth new-build Multi-Purpose Floater hull along with standardised topsides modules.
SBM Offshore CEO Øivind Tangen said: “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.”
In Guyana, SBM Offshore intends to continue its local content development efforts by engaging local fabrication resources and integrating Guyanese engineers into project delivery and operational teams.
The experience gained from FPSOs Liza Destiny, Liza Unity, Prosperity, ONE GUYANA and Jaguar informs SBM Offshore’s operational strategy in the region.
Last month, ExxonMobil completed the purchase of ONE GUYANA from SBM Offshore in a transaction valued at around $2.32bn (€1.96bn).
