SBM Offshore says Liza 2 floater would be its largest capacity FPSO ever to be built

A Floating Production Storage and Offloading vessel under construction

Dutch floater specialist SBM Offshore is awaiting the Liza 2 development sanction in Guyana so it can deliver its largest ever capacity FPSO for the ExxonMobil-operated project.

The Company was awarded the Front End Engineering and Design (FEED) study for FPSO Liza 2. The next phase for this major project will represent SBM Offshore’s first Fast4WardTM project, subject to final authorizations. “FPSO Liza 2 will be the largest capacity FPSO the Company has ever delivered, at the same time following an accelerated time schedule,” the company said in a press release on Thursday.

The company said its first standard, multi-purpose hull, reserved and planned to be allocated to the FPSO Liza 2 project, is progressing well and according to schedule.

In providing an update on the Liza 1 FPSO – the Liza Destiny, SBM said, “The major project FPSO Liza 1 is making good progress to the satisfaction of our client. After finishing the first dry dock session, the project has entered an important phase with concurrent activities in hull conversion, module fabrication and package delivery. In Guyana, work is underway with respect to operations readiness while reviewing ways to maximize local content.”

Discussions with ExxonMobil are underway regarding a potential accelerated transfer of ownership of the Liza Destiny using the purchase option in the 10-year lease contract. “The outcomes of these discussions are expected to lead to a transfer of the FPSO ownership and operation after a period of up to 2 years after startup. This, however, is not final as such and will be reflected in the backlog if and when this has become final,” the company stated.

Additional oil discoveries off the Guyana coast have pushed the total estimated recoverable reserves to more than 4 billion barrels of oil. ExxonMobil has said this has the potential for 5 FPSOs operating in the 6.6 million acres Stabroek Block over the next decade.