SBM Offshore has announced a new 10-year Operations and Maintenance Enabling Agreement with ExxonMobil Guyana, for the operations and maintenance of floating production, storage and offloading (FPSO) vessels Liza Destiny, Liza Unity, Prosperity and ONE GUYANA.
This agreement has 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, with 10 years lease for FPSO Liza Destiny and up to 2 years lease for FPSOs Liza Unity, Prosperity and ONE GUYANA after which the FPSOs’ ownership will transfer to the client. The FPSO fleet will support ExxonMobil’s exploration and production activities in the Stabroek Block, offshore Guyana.
SBM Offshore said the agreement supports its long-term business vision in Guyana, enabling the company to invest locally and sustainably in people and infrastructure, while deploying its digital and operational technologies to the Guyana fleet. The agreement will also have a substantial impact on SBM Offshore’s revenue backlog, estimated to be around US$3 billion, based on various operating and maintenance assumptions.
Under the new agreement, SBM Offshore will operate the units through an Integrated Operation Model, which encompasses an organisation model including seconding ExxonMobil Guyana employees in some key onshore and offshore positions. This approach will combine SBM Offshore and ExxonMobil Guyana’s experience and resources to increase team efficiency and foster synergies between the two companies, SBM Offshore explained.
“We are very pleased with the contract concluded with ExxonMobil Guyana leveraging both companies’ recognised operating excellence. This contract capitalises on our developments in Guyana to date, positioning the Company for long-term operations in the country. This Integrated Operation Model is the first of its kind in the industry and extends our relationship with ExxonMobil Guyana by integrating further our teams. We believe it is the optimal solution to achieve excellence in the operation of Guyanese assets bringing value to all stakeholders and setting a new performance benchmark for the industry.”
The Liza Destiny and Unity are currently producing 380,000 barrels per day (bpd) offshore Guyana. Prosperity recently arrived and is scheduled for first oil in the fourth quarter of 2023. ONE GUYANA is expected to be delivered in 2025.