SBM Offshore calls 10-year Guyana O&M deal “a new benchmark” for clients

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A deal SBM Offshore signed with ExxonMobil can set the stage for a new cadre of terms and conditions for relationships with its clients, the company said in its 2023 annual report. 

“The 10-year Operations and Maintenance Enabling Agreement (“OMEA”) in Guyana establishes a new benchmark which can be applied to other clients, demonstrating our ability to develop new models and respond to the dynamics of an evolving financing market,” SBM Offshore said.

The OMEA, announced by the company in May 2023 was signed with ExxonMobil Guyana, then Esso Exploration and Production Guyana Limited (EEPGL), for the operation and maintenance of the fleet of floating production, storage and offloading (FPSO) vessels in Guyana. This includes the currently producing Liza Destiny, Liza Unity and Prosperity, and the under-construction ONE GUYANA.

This agreement set the new terms for the operations of the Guyana FPSO fleet up to 2033. The lease terms and durations remain the same for all units from prior deals, with 10 years lease for the Liza Destiny and up to two years lease for Liza Unity, Prosperity, and ONE GUYANA, after which the FPSOs’ ownership will transfer to the client.

The deal added an estimated US$3 billion to SBM Offshore’s revenue backlog. 

The first three vessels collectively produce upward of 600,000 barrels of oil per day (b/d), while the ONE GUYANA will add 250,000 b/d when it starts up in 2025. The four vessels are expected to produce about 900,000 b/d by then. 

ExxonMobil is the operator and lead stakeholder (45%) of the Stabroek block, where the FPSOs operate, supported by Hess (30%) and CNOOC (25%). 

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