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Netherlands-based SBM Offshore, a provider of the design, construction, installation, and operation of offshore floating facilities, has been entrusted with the front end engineering and design (FEED) studies for a floating production, storage, and offloading (FPSO) vessel destined to be deployed at an oil project, which ExxonMobil Guyana, an affiliate of the U.S.-headquartered energy giant ExxonMobil, is set on developing in the Stabroek block off the coast of Guyana.
SBM Offshore has secured contracts to perform FEED studies for an FPSO, which will work at the Longtail development project offshore Guyana. This move triggers the initial release of funds by ExxonMobil Guyana to begin FEED activities and allocate a Fast4Ward hull for the project.
The Dutch giant will further construct and install the FPSO, subject to government approvals of the development plan, a final investment decision (FID) by the operator, and project approval to release the second phase of work.
The FPSO’s ownership is expected to be transferred to ExxonMobil at the end of the construction period and before the start of operations in Guyana. The construction costs are anticipated to be partially funded by senior loans, which will be repaid when the vessel’s transfer to the client takes place.
SBM Offshore will operate the FPSO through its integrated operations and maintenance model. The company will design and construct the unit through its Fast4Ward program, using its ninth new build, multi-purpose floater hull, combined with several standardized topsides modules.
The FPSO, which will be designed to process 1,200 million cubic feet of gas per day and produce 250,000 barrels of condensate per day, will be spread-moored in water depths of about 1,750 meters and able to store around 2 million barrels of condensate.
Building on its experience with the FPSOs Liza Destiny, Liza Unity, Prosperity, One Guyana, and Jaguar, the Dutch player claims that it continues to commit to local content development in Guyana by sourcing fabrication scope locally and integrating Guyanese engineers into the execution and operational teams.
Disclosed in June 2018, the Longtail discovery is ExxonMobil’s eighth oil discovery in the Stabroek block. The Longtail- 1 well was drilled in a new reservoir, encountering approximately 256 feet (78 meters) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to 18,057 feet (5,504 meters) in 6,365 feet (1,940 meters) of water.
Øivind Tangen, SBM Offshore’s Chief Executive Officer, commented: “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.”
The Stabroek block partners are ExxonMobil (operator with 45% interest), Hess (now part of Chevron, 30%), and CNOOC Petroleum Guyana (25%).
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