Dutch floater specialist, SBM Offshore announced on Friday that it has been awarded contracts to perform front end engineering and design (FEED) for a floating production, storage and offloading vessel (FPSO) for ExxonMobil’s Whiptail development project in Guyana.
Following FEED and subject to government approvals of the development plan as well as a final investment decision by ExxonMobil Guyana Limited, the second phase of work will be released. SBM Offshore said it will then construct and install the FPSO. The FEED contract award triggers the initial release of funds by ExxonMobil Guyana to begin FEED activities and commits a Fast4Ward® hull for the execution of the Whiptail development project.
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FEED is an engineering design approach adopted prior to detailed engineering, procurement, and construction. It is an important engineering design phase that is used to control project expenses and thoroughly plan a project.
SBM Offshore said under the contracts, the FPSO’s ownership is expected to be transferred to the client at the end of the construction period and before the 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.
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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.
The company will design and construct the FPSO using its industry-leading Fast4Ward® program utilizing its seventh new build, multi-purpose floater hull, combined with several standardized topsides modules.
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Building on the experience to date of FPSOs Liza Destiny, Liza Unity, Prosperity and ONE GUYANA, SBM Offshore said it continues to commit to local content development in the South American county by sourcing fabrication scope locally and integrating Guyanese engineers into the execution and operational teams.
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“We are proud to announce ExxonMobil Guyana has awarded the contracts for a fifth FPSO from SBM Offshore in Guyana,” said Bruno Chabas, SBM Offshore’s Chief Executive Officer. “This project demonstrates once more the value that our industry-leading Fast4Ward® program brings to our clients and other stakeholders while delivering carbon-efficient energy to the world.”
The FPSO will be designed to produce 250,000 barrels of oil per day, will have associated gas treatment capacity of 540 million cubic feet per day and water injection capacity of 300,000 barrels per day. The FPSO will be spread moored in water depth of about 1,630 meters and will be able to store around 2 million barrels of crude oil.
