SBM Offshore (SBFFF) announced it has been awarded contracts by Exxon Mobil (XOM), an affiliate of Exxon Mobil Corporation, to perform Front End Engineering and Design, or FEED, studies for a Floating Production, Storage and Offloading vessel, or FPSO, for the Longtail development project in Guyana.
The FEED contracts award triggers the initial release of funds by ExxonMobil Guyana Limited to begin FEED activities and allocate a Fast4Ward® hull for the Longtail development project in Guyana. SBM Offshore will further construct and install the FPSO, subject to government approvals of the development plan, final investment decision by ExxonMobil, and project approval to release the second phase of work.
Under the contracts, the FPSO’s ownership is expected to be transferred to the client at the end of the construction period and before 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.
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.
SBM Offshore will design and construct the FPSO using its industry-leading Fast4Ward program using the Company’s ninth new build, Multi-Purpose Floater hull, combined with several standardized topsides modules. The FPSO will be designed to process 1,200 million cubic feet of gas per day and produce 250,000 barrels of condensate per day. The FPSO will be spread moored in water depth of about 1,750 meters and will be able to store around 2 million barrels of condensate.
