SBM Offshore scores another FPSO job with Exxon in Guyana

ExxonMobil has awarded SBM Offshore a Front End Engineering and Design (FEED) for a second Floating Production, Storage and Offloading vessel (FPSO) for the Liza development offshore Guyana. SBM is already building one FPSO for the first phase of the Liza development, under the contract signed in 2017.

As for this new FEED contract with Exxon, following FEED and subject to requisite government approvals, project sanction and an authorization to proceed with the next phase, SBM Offshore will construct, install and then lease and operate the FPSO for a period of up to 2 years, after which the FPSO ownership and operation will transfer to ExxonMobil.

The second Liza FPSO design is based on SBM Offshore’s  Fast4WardTM program as it incorporates the company’s new build, multi-purpose hull combined with several standardized topsides modules.

Fast4Ward is a program accelerated by SBM in 2017, when the company ordered an FPSO hull on speculation. The program is designed to accelerate delivery of an FPSO by up to 12 months. For a typical project, this can boost value for a client by more than US$0.5 billion, materially lowering project break-even prices, SBM said at the time.

The Liza 2 FPSO will be designed to produce 220,000 barrels of oil per day, will have associated gas treatment capacity of 400 million cubic feet per day and water injection capacity of 250,000 barrels per day. The FPSO will be spread moored in water depth of about 1,600 meters and will be able to store around 2 million barrels of crude oil.

With respect to the first FPSO mentioned earlier,- the FPSO Liza Destiny (Liza 1) –  SBM said the project was progressing according to plan and currently under conversion in Singapore, discussions with the client are underway regarding a potential accelerated transfer of ownership using the purchase option in the 10-year lease contract.

The outcomes of these discussions are expected to lead to a transfer of the FPSO ownership and operation after a period of up to 2 years, SBM Offshore said.

The Dutch FPSO specialist also added it was looking at options to maximize local content and Guyanese workforce development in preparation for the operating phase of both Liza FPSOs.

SBM Offshore CEO Bruno Chabas said: “We are pleased to report that ExxonMobil has selected SBM Offshore to award contracts for the second Liza FPSO, starting with the front-end engineering, for the development of the second phase of the world-class deepwater development in Guyana.

“The successful teamwork with our client ExxonMobil on the FPSO Liza Destiny project provided a solid foundation for this award. This project will be adding further traction to SBM Offshore’s Fast4WardTM program as its design is incorporating our multi-purpose hull and a number of standardized modules. We look forward to continuing to build on our close collaboration with ExxonMobil in order to also make this project a success.”