Guyana’s offshore oil production is driven by floating production, storage and offloading (FPSO) vessels, with four units currently operating: Liza Destiny, Liza Unity, Prosperity and ONE GUYANA.
These vessels, built and operated by SBM Offshore for the ExxonMobil‑led consortium, are deployed in the Stabroek Block and form the backbone of Guyana’s oil output, which averaged 716,000 barrels per day (b/d) in 2025. Production is driven by ExxonMobil, with co-venturers Hess Corporation and CNOOC.
Have you ever wondered how FPSOs work? Let’s examine the key aspects of these offshore production systems.
What is an FPSO?
An FPSO resembles a large ship or tanker that produces, processes, stores, and offloads crude oil at sea. It is deployed in offshore developments where building pipelines to shore is not feasible.
FPSOs, unlike fixed oil platforms, can be relocated to different sites. This mobility makes them a flexible and cost-effective solution for oil and gas production, particularly in deepwater or marginal fields.
Design and construction
SBM Offshore is the first company to design, construct, install, and operate these vessels in Guyana. Several units have been built using standardized hulls and modular topsides to speed up delivery and improve efficiency.
The earliest unit, Liza Destiny, was built and converted by SBM Offshore from a tanker hull at the Keppel Shipyard in Singapore, with module fabrication at nearby yards such as Dyna‑Mac, before sailing to Guyanese waters in roughly two months.
Some later FPSOs, including the ONE GUYANA, are constructed under SBM’s Fast4Ward® program with new multipurpose hulls assembled in Singapore while topsides modules are fabricated at partner facilities such as QMW in China, then integrated quayside before transport.
MODEC got the contracts to deliver the Errea Wittu and Hammerhead FPSOs, due this year and in 2029.
SBM Offshore is expected to deliver the Jaguar FPSO next year.
How an FPSO Operates
Once installed offshore, the FPSO is moored in place and connected to subsea wells on the seabed. Oil flows from reservoirs through flowlines to the vessel for processing. Onboard, the facility separates crude oil, natural gas, and water. Oil is treated and stored in hull tanks, while gas is used to power the vessel or is reinjected into the reservoir. Produced water is treated and either discharged or reinjected to maintain reservoir pressure.
Capacity and Production
Modern FPSOs in Guyana can store up to about two million barrels of crude oil and produce up to 250,000 b/d, depending on the project. After processing, oil is transferred to shuttle tankers for export to international markets, allowing continuous production without pipelines to shore.
FPSOs also integrate power generation systems, processing equipment, and living quarters for offshore crews. Digital systems monitor operations in real time to improve efficiency, safety, and reliability.
Each vessel is tied to a specific offshore development. For example, the ONE GUYANA FPSO supports the Yellowtail project and can produce up to 250,000 b/d. SBM Offshore operates and maintains several of Guyana’s FPSOs under long-term agreements, even after ownership transfers to ExxonMobil Guyana Limited.
SBM Offshore sees at least 16 FPSO prospects over next three years | OilNOW
FPSOs are central to Guyana’s emergence as a major oil producer. They enable rapid development of deepwater resources while keeping production costs competitive and reducing emissions through efficient offshore processing.
