ExxonMobil buys FPSO working off Guyana for $1.23 billion

U.S.-headquartered ExxonMobil has closed the purchase of a floating production, storage, and offloading (FPSO) vessel working in Guyana from SBM Offshore, while the Dutch FPSO operator will continue operating and maintaining the vessel.

ExxonMobil Guyana Ltd. and BM Offshore completed the transaction related to the FPSO Prosperity, ahead of the maximum lease term, which would have expired next November.

As part of the transaction, ExxonMobil Guyana assumes ownership of the unit while SBM Offshore will continue to operate and maintain the FPSO up to 2033.

The transaction includes a total cash consideration of approximately $1.23 billion, with the net cash proceeds to be primarily used for the full repayment of the $0.98 billion project financing and as such will decrease SBM Offshore’s net debt position.

According to SBM Offshore, the FPSO Prosperity has been on hire since November 2023 and has and will continue to be operated through the integrated operations and maintenance model combining the companies’ expertise and experience.

The FPSO began production on November 14, 2023, at the Payara field development, Guyana’s third offshore oil development on the Stabroek block, ahead of schedule.

ExxonMobil made a final investment decision to proceed with the $9 billion development at the end of September 2020, after receiving government approvals. The naming ceremony for the vessel was held in February 2023 at Keppel Shipyard.

Prosperity and Liza Unity are said to be two of the world’s first FPSOs to be awarded the SUSTAIN-1 notation by the American Bureau of Shipping (ABS) in recognition of the sustainability of its design, documentation, and operational procedures.