SBM Offshore cheers FPSO steel strike milestone for ExxonMobil’s oil project off Guyana

Netherlands-based SBM Offshore is making progress in bringing to life a floating production, storage, and offloading (FPSO) vessel, which will work on U.S.-based ExxonMobil’s sixth deepwater oil development on the Stabroek block off the coast of Guyana.

While disclosing a steel strike ceremony for the FPSO Jaguar, the Dutch player explained that the symbolic event took place at Guyana Shore Base Incorporated (GYSBI) on November 12, kicking off the production of over 300 metric tons of fabricated fixtures for the Stabroek block-bound vessel.

According to SBM Offshore, this effort is powered by three Guyanese fabrication companies, including Industrial Fabrications Incorporated (InFab), Guyana Oil and Gas Support Services Incorporated (GOGSSI), and Zeco Group of Services.

“Together, these companies represent the expertise, skill, and potential of Guyana’s growing energy sector, and SBM Offshore is proud to partner with them in making FPSO Jaguar a reality. Congratulations to everyone involved in reaching this milestone—this is just the beginning of what we can accomplish together,” emphasized the Dutch FPSO operator.

SBM Offshore highlights that the event marks “a significant step forward” in local content development and industrial collaboration for ExxonMobil’s Whiptail oil development, which is the U.S. player’s sixth project in Guyana’s Stabroek block.

Once ExxonMobil made a final investment decision (FID) to develop the project, the Netherlands-based firm won the front end engineering and design (FEED) work for the FPSO Jaguar, which will be deployed on the Guyanese project. With an expected field life of at least twenty years, the project is slated to come online in 2027.

Located at a water depth of approximately 2,000 meters, the Whiptail project will develop the Whiptail, Pinktail, and Tilapia fields, along with potential additional resources, should they be feasible and economically viable. The development concept encompasses drilling operations via drillships to produce oil from around 40 to 65 production and injection wells.

The FPSO Jaguar will be the fifth FPSO built by the Dutch player for operations in Guyana. SBM Offshore expects to operate the vessel for ten years under the operations and maintenance enabling agreement signed in 2023.

With a production capacity of 250,000 barrels of oil per day, the unit will have a daily associated gas treatment capacity of 540 million cubic feet and a water injection capacity of 300,000 barrels per day.

The steel strike ceremony for the FPSO Jaguar comes days after ExxonMobil assumed ownership of another FPSO, which is working on its third oil project on the Stabroek block. SBM Offshore will continue to operate and maintain the FPSO up to 2033.