SBM Offshore To Build Its Largest FPSO For Exxon
FPSO operator SBM Offshore has been awarded contracts to perform front-end engineering and design (FEED) for an FPSO for the Yellowtail development project offshore Guyana.
The FEED contract award triggers the initial release of funds by ExxonMobil’s subsidiary Esso Exploration and Production Guyana Limited to begin FEED activities and secure a Fast4Ward hull. According to SBM, this will be the largest producing unit ever built by SBM.
Following FEED and subject to government approvals in Guyana of the development plan, project sanction including final investment decision by ExxonMobil, and the release of the second phase of work, SBM Offshore will construct, install, and then lease the FPSO and operate it for a period of up to 2 years. First oil is expected in 2025.
SBM Offshore will design and construct the FPSO using its Fast4Ward program allocating the company’s sixth new build, multi-purpose hull combined with several standardized topsides modules.
The FPSO will be designed to produce 250,000 barrels of oil per day, will have an associated gas treatment capacity of 450 million cubic feet per day, and a water injection capacity of 300,000 barrels per day. The FPSO will be spread moored in a water depth of about 5,900 feet and will be able to store around 2 million barrels of crude oil.
Building on the experience to date on the Liza Destiny, Liza Unity, and Prosperity FPSOs, SBM Offshore continues to commit to local content development in Guyana through sourcing fabrication scope locally and the integration of Guyanese engineers in the execution and operational teams.
It is also worth noting that SBM Offshore established a special purpose company with McDermott for the execution of the turnkey phase of the project.
This new company will benefit from the combined engineering and fabrication capacity as well as the experience of both companies in delivering EPC solutions to the energy industry. SBM Offshore will hold 70 percent and McDermott will hold 30 percent equity ownership in the company. The FPSO will be fully owned by SBM Offshore.
“SBM Offshore is proud to announce ExxonMobil has awarded the contracts for the fourth FPSO to be deployed in Guyana. When finished, the FPSO will be the largest producing unit ever built by the company,” Bruno Chabas, SBM Offshore CEO, said.
“We are also pleased to announce our partnership with McDermott and look forward to working together through the execution phase and delivering this world-class project,” he added.
“Our people and resources bring the proven project execution, integrated engineering, and modularization capabilities essential for delivery assurance and success. We will align these strengths with those of SBM Offshore to drive a cohesive, efficient execution strategy together,” Samik Mukherjee, McDermott’s EVP and COO, stated.
Earlier this week, TechnipFMC was awarded a contract by ExxonMobil for 51 enhanced vertical deepwater trees and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment for the Yellowtail development.
The 6.6 million-acre Stabroek Block, where Yellowtail is located, holds around 10 billion oil-equivalent barrels. The number of total significant discoveries within the block currently stands at 21.
ExxonMobil affiliate Esso Exploration and Production Guyana Limited is the operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds a 25 percent stake.
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