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SBM Offshore confirms contract awards for ‘One Guyana’ Yellowtail FPSO

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SBM Offshore confirmed on Tuesday that it has been awarded contracts for the construction of the ‘One Guyana’ floating production, storage and offloading (FPSO) vessel by ExxonMobil affiliate, Esso Exploration and Production Guyana Limited (EEPGL).

“Under these contracts, SBM Offshore will construct, install and then lease and operate the One Guyana FPSO for a period of up to two years, after which the FPSO ownership and operation will transfer to EEPGL.”

As with previous projects the One Guyana is based on SBM Offshore’s Fast4Ward® program that incorporates the Company’s new build, multi-purpose floater hull combined with several standardized topsides modules.

SBM Offshore confirmed that the vessel will be designed to produce 250,000 barrels of oil per day, with associated gas treatment capacity of 450 million cubic feet per day and water injection capacity of 300,000 barrels per day. The FPSO, the company said, will be spread moored in water depth of about 1,800 meters and will be able to store around 2 million barrels of crude oil.

The Dutch floater specialist revealed that the project’s turnkey phase will be executed in conjunction with United States engineering and construction company, McDermott, under a special purpose company. In it, SBM Offshore holds 70% and McDermott 30% equity ownership. But the FPSO will be fully owned by SBM offshore.

“SBM Offshore is committed to work with Guyanese companies for work to be performed in Guyana and is preparing to further recruit and employ Guyanese engineers into the One Guyana project team,” the company said.

SBM Offshore’s contract awards followed final investment decision (FID) announcements on Yellowtail by EEPGL and its co-venturers, and prior front-end engineering and design studies.

The government issued a production license and an environmental permit last Friday, clearing the way for the development at the Stabroek Block. As the fourth development, first oil at Yellowtail in 2025/2026 will take Guyana’s accumulated oil production to over 800,000 barrels of oil per day.

ExxonMobil holds a 45 percent interest in the Stabroek block, Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds a 25 percent interest.

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