SBM Offshore in long-term FPSO supply deal with ExxonMobil

Dutch FPSO provider SBM Offshore has signed a long-term FPSO supply agreement with ExxonMobil, covering potential future FPSO orders.

SBM Offshore, which last week delivered an FPSO for Exxon’s Guyana operations, said the agreement signed with Exxon was non-exclusive.

According to the Dutch company, the deal with ExxonMobil establishes the general legal framework and specific terms in relation to the engineering, procurement, construction and installation work regarding potential future contracts relating to leased FPSOs, which includes Build-Operate-Transfer projects that generally cover a short lease term.

Bruno Chabas, CEO of SBM Offshore commented: “We are very pleased with the long-term FPSO supply agreement with ExxonMobil. This agreement is a continuation of our long history of successful teamwork between our companies, further strengthening our long term cooperation.”

In what is a four-decade relationship with ExxonMobil, SBM Offshore has so far supplied more than ten floating systems to ExxonMobil, including five FPSOs, deepwater offloading systems, and an FSO.

“Additionally, multiple major projects are currently in various stages of progress,” SBM Offshore said. Some of these projects include the FPSOs destined to make Guyana an oil-producing nation.

As previously reported, apart from the recently delivered Liza Destiny FPSO to Exxon in Guyana, SBM Offshore is building another FPSO for Exxon’s Guyana operations – the Liza Unity – for the second phase of the Liza offshore oil field development in the giant Stabroek block where Exxon has made more than a dozen of oil discoveries in the past three years.

China’s Waigaoqiao Shipbuilding launched the Liza Unity FPSO hull in June. This will be the first FPSO built under its Fast4Ward program – a standardized FPSO designed to systematize the FPSO construction and delivery process, thus reducing cost and speeding up the time to the market.

The discoveries offshore Guyana so far have established the potential for at least five FPSO vessels producing more than 750,000 barrels of oil per day by 2025. Guyana has yet to produce first oil. This is expected to happen in the first quarter of 2020, via the Liza Destiny FPSO.

Commenting on the agreement with ExxonMobil, Séverine Baudic, Managing Director Floating Production Solutions of SBM Offshore commented: “This agreement aims at extending our constructive business relationship with ExxonMobil that has been created through delivering a series of major offshore projects together. We look forward to continue working together in the future and expanding our track-record of reliable execution on deepwater projects.”

Offshore Energy Today Staff

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