The Liza Unity Floating Production Storage and Offloading vessel (FPSO) being built by Dutch floater specialist SBM Offshore is the first of its kind to be constructed under the company’s pioneering Fast4Ward program which aims to transform business by reducing cycle time to energy delivery, de-risking projects and improving quality and safety.
The floating oil production complex will be the second FPSO built by SBM Offshore for ExxonMobil’s Liza project at the Stabroek Block off the coast of Guyana.
SBM Offshore says Fast4Ward is based on five key principles: engaging early with clients, standardization, focus on flawless execution, partnering with the supply chain and use of digital solutions in today’s volatile environment. The Company said it is now applying the Fast4Ward principles across its product portfolio.
“This adds value for clients and in particular improves the economics of deepwater projects. To achieve this, we have leveraged SBM Offshore’s experience to standardize the design and the execution of projects, facilitating repeatability and the knock-on benefits. In addition, Fast4Ward incorporates digital solutions and emerging technologies, allowing for continual advancements of our solutions,” SBM Offshore said in an overview of its operations.
Standardizing the Company’s floating production solutions provides knock-on savings in the supply chain and construction phases, resulting in a reduction in delivery time.
At a period when projects are being delayed due to the novel coronavirus pandemic, solutions that reduces completion time will be particularly useful for keeping developments on track, or significantly reducing unforeseen delays.
Shorter cycle times also mean that financial gains start earlier for operators which ultimately passes on to the host country. Additionally, standardization results in overall lower CAPEX and better use of time to dedicate to safety and quality related activities.
Already, development cost for the 120,000 barrels per day Liza Phase 1 project offshore Guyana has been reduced by close to US$1 billion. At the time of sanctioning in June 2017, the budgeted cost was just over US$4.4 billion which included a lease capitalization cost of approximately $1.2 billion for the Liza Destiny FPSO built by SBM Offshore.
The Liza Unity FPSO will produce oil at the Liza Phase 2 Development at a peak rate of 220,000 barrels per day. It includes a generic hull, built ahead of the project, + 13% deck space compared to a VLCC to accommodate the most complex topsides – up to ~ 50,000 tonnes of operating topsides (subject to field specifics) and future tie-backs, and will have up to 2.3 million barrels storage capacity.
The Noble Tom Madden drillship began development drilling for Liza Phase 2 in February. When compared to the 17 wells drilled for Liza Phase 1, approximately 35-40 wells will be drilled at two subsea drill centers for Phase 2 consisting of a combination of producers and injectors to support production of oil, injection of water and reinjection of associated gas.
The US$6 billion Liza Phase 2 Development project was sanctioned in May 2019.