Norway firm forecasts five more FPSO awards for Guyana in five years

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Norway-based energy research and business intelligence company, Rystad Energy, expects there to be five new awards for floating production, storage and offloading (FPSO) vessels over the next five years for Guyana. 

This was stated in a January 2024 whitepaper South America: An FPSO hotspot, alongside the expectation that there would be 12 FPSO awards for Brazil in the same period. 

ExxonMobil, the operator of Guyana’s Stabroek Block, is expected to make its full award to SBM Offshore for the delivery of the Jaguar FPSO for the Whiptail project in the first half of 2024. The Dutch floater specialist has already been awarded contracts to perform front end engineering and design (FEED) for the vessel. Exxon and its Stabroek Block co-venturers, Hess and CNOOC, will make their final investment decision following Whiptail’s approval by the Guyana authorities, which is expected in the first quarter of 2024

There are other contenders for FPSO awards in the next few years:

  • CGX Energy has made two discoveries at the Kawa-1 and Wei-1 wells in the Corentyne Block and has said it can turn on the tap for oil production there by 2030. However, there are numerous hurdles and challenges, including the need to prove the reserves to support the development, the quest for potential new partners, and financing woes. 
  • Eco (Atlantic) Oil & Gas said the Jethro-1 and Joe-1 heavy oil discoveries in the Orinduik Block can be developed with the right partner, which it is currently seeking out. Eco also said it has identified two targets in the block, holding an estimated 700 million barrels, to be drilled in 12-18 months. 
  • ExxonMobil had said that the Fangtooth field was being considered for its seventh Stabroek Block development. The company has also been urged by the Guyana government to prioritize gas development. A decision has not been made. 
  • Any additional FPSO projects to be pursued by ExxonMobil. It has said there is potential for 10 FPSOs to be operating in the Stabroek Block simultaneously, to develop the substantial 11 billion oil-equivalent barrels.

Rystad Energy said the South American region is the global leader in the FPSO segment, in terms of active and future projects. Brazil leads, and Guyana is in second place. Rystad Energy noted that three new platforms will start operations in the Stabroek Block. These are the ONE GUYANA, Errea Wittu, and Jaguar FPSOs, each targeting initial oil production of 250,000 barrels per day (b/d). 

Significant capacity additions are expected for Guyana and Brazil, with projects that have either recently started or will achieve startup in the coming years. Rystad energy said a total of 20 facilities have been awarded in these two countries in the past five years, with a combined processing capacity of 9.7 million b/d.


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