The FEED contract award triggers the initial release of funds by ExxonMobil’s subsidiary Esso Exploration and Production Guyana Limited (EEPGL) to begin FEED activities and secure a Fast4Ward® hull.
Following FEED and subject to government approvals in Guyana of the development plan, project sanction including final investment decision by ExxonMobil, and EEPGL’s 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 programme allocating the company’s sixth new build, Multi-Purpose Hull combined with several standardised topsides modules. The FPSO will be designed to produce 250 000 bpd, will have associated gas treatment capacity of 450 million ft3/d and water injection capacity of 300 000 bpd. The FPSO will be spread moored in water depth of about 1800 m and will be able to store around 2 million barrels of crude oil.
In order to strengthen its execution model given the current challenging market environment, SBM Offshore established a special purpose company (SPC) with McDermott for the execution of the turnkey phase of the project. This SPC 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% and McDermott will hold 30% equity ownership in this SPC. The FPSO will be fully owned by SBM Offshore.
Bruno Chabas, SBM Offshore’s Chief Executive Officer, said: “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. This project again demonstrates the value that our industry leading Fast4Ward® program continues to bring to our clients and other stakeholders. We are also pleased to announce our partnership with McDermott and look forward to working together through the execution phase and deliver this world class project.”
Samik Mukherjee, McDermott’s Executive Vice President and Chief Operating Officer, said: “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.”
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Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/17112021/sbm-offshore-to-perform-feed-for-fourth-fpso-in-guyana/