SBM Offshore Sells FPSO Prosperity to ExxonMobil Guyana

SBM Offshore has completed the sale of the floating production, storage, and offloading unit (FPSO) Prosperity to ExxonMobil Guyana Ltd, an affiliate of Exxon Mobil Corporation.

The purchase, which was closed ahead of the maximum lease term expiring in November 2025, was for total cash consideration of approximately $1.23 billion, SBM Offshore said in a news release.

ExxonMobil Guyana assumes ownership of the unit, while SBM Offshore will continue to operate and maintain the FPSO up to 2033. The net cash proceeds will primarily be used for the full repayment of the $0.98 billion project financing and will decrease SBM Offshore’s net debt position, the company said.

The FPSO Prosperity has been on hire since November 2023 and will continue to be operated through an integrated operations and maintenance model “combining SBM Offshore and ExxonMobil’s expertise and experience delivering outstanding operational performance,” according to the release. The organization model includes seconding ExxonMobil Guyana employees to some key onshore and offshore positions.

SBM Offshore noted that the impact of the transaction will be included in the update of its 2024 guidance.

In May 2023, SBM Offshore secured a 10-year operations and maintenance enabling agreement with ExxonMobil Guyana for the operations and maintenance of FPSOs Liza Destiny, Liza Unity, Prosperity and One Guyana.

The framework agreement established the terms related to the operations of the Guyana FPSO fleet for a period of 10 years 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 two years lease for FPSOs Liza Unity, Prosperity and One Guyana, after which the FPSOs’ ownership will transfer to the client, SBM Offshore said in an earlier statement.

FPSO Sepetiba Divestment

Meanwhile, SBM Offshore also completed the divestment of a 13.5 percent ownership interest in the special purpose companies related to the lease and operation of the FPSO Sepetiba to China Merchants Financial Leasing (Hong Kong) Holding Co., Limited (CMFL).

FPSO Sepetiba is installed at the Mero unitized field located in the Santos Basin, approximately 111.8 miles (180 kilometers) offshore Rio de Janeiro in Brazil. Mero is operated by Petróleo Brasileiro S.A. (Petrobras) with a 38.6 percent interest, while TotalEnergies and Shell each hold 19.3 percent. The other partners are China National Petroleum Corp. and China National Offshore Oil Corp. with a 9.65 percent stake each, as well as PPSA (3.5 percent). Mero is the third largest field in Brazil in terms of volume of oil in place, behind only Tupi and Búzios, also located in the pre-salt Santos Basin.

CMFL entered into an agreement in February 2022 to acquire its ownership interest after the FPSO Sepetiba had commenced operations. SBM Offshore is the operator of the FPSO and will remain the majority shareholder with a 51 percent ownership interest, according to a separate news release.

In August, Petrobras reported that FPSO Sepetiba had reached top production. The vessel attained production of 180,000 barrels per day (bpd) of oil in the Mero field, in the Santos Basin’s pre-salt layer. The milestone was reached within the estimated time frame of eight months due to the promptness of the unit’s oil treatment and gas compression systems, including the good productivity of the well in the Mero Basin, the company noted.

SBM Offshore designs, builds, installs and operates offshore floating facilities for the offshore energy industry.

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