ExxonMobil Guyana awarded contracts to SBM Offshore to perform front end engineering and design (FEED) studies for the Longtail floating production storage and offloading (FPSO) vessel, the Dutch shipbuilder said Tuesday.
Longtail is Exxon’s eighth proposed development offshore Guyana.
“The FEED contracts award triggers the initial release of funds by ExxonMobil Guyana Limited to begin FEED activities and allocate a Fast4Ward® hull for the Longtail development project in Guyana,” SBM Offshore said.
According to the statement, SBM Offshore will further construct and install the FPSO, subject to government approvals of the development plan, final investment decision by ExxonMobil, and project approval to release the second phase of work.
Under the contracts, the FPSO’s ownership is expected to be transferred to the client at the end of the construction period and before start of operations in Guyana. The construction costs are expected to be partially funded by senior loans which will be repaid at the time of the FPSO’s transfer to the client.
“SBM Offshore is expected to operate the FPSO through its integrated operations and maintenance model combining SBM Offshore and ExxonMobil’s expertise and experience, leveraging key learnings and the operational excellence of the units currently deployed in Guyana,” SBM Offshore said.
SBM Offshore will design and construct the FPSO using its Fast4Ward program using the company’s ninth new build, multi-purpose floater hull, combined with several standardized topsides modules. The FPSO will be designed to process 1.2 billion cubic feet of gas per day and produce 250,000 barrels of condensate per day. The FPSO will be spread moored in water depth of about 1,750 meters and will be able to store around 2 million barrels of condensate.
SBM Offshore said it continues to commit to local content development in Guyana by sourcing fabrication scope locally and integrating Guyanese engineers into the execution and operational teams, building on its experience to date with other FPSO contracts it got from ExxonMobil Guyana.
Øivind Tangen, SBM Offshore’s Chief Executive Officer: “SBM Offshore is well positioned to support the Longtail development, a major gas play demanding the highest gas handling capacity ever deployed on an FPSO. Our teams remain fully committed to supporting the success of this project and ExxonMobil’s long-term energy development strategy.”
Exxon has submitted key documents and is progressing through the Guyana government’s review process of the Longtail proposed development. The company expects government approval this year. It is aiming for a startup in 2030.
ExxonMobil has outlined nine oil and gas developments for execution offshore Guyana. Seven have been approved by the Guyana government. Four of those are currently producing oil at a rate exceeding 900,000 barrels per day, using FPSOs supplied by SBM Offshore.
