SBM Offshore firms up Guyana FPSO deal with ExxonMobil

Netherlands-based floater specialist SBM Offshore announced on Tuesday that Esso Exploration and Production Guyana Limited (EEPGL), an affiliate of Exxon Mobil Corporation, had confirmed the award of contracts for the Yellowtail development project located in the Stabroek block in Guyana. 

Under these contracts, SBM Offshore will build, install and then lease and operate One Guyana floating production storage and offloading (FPSO) vessel for a period of up to two years, after which the ownership and operation will transfer to EEPGL. The award follows the completion of front-end engineering and design studies, receipt of requisite government approvals, and the final investment decision on the project by ExxonMobil and block co-venturers.

The FPSO will be designed to produce 250,000 bopd, will have an associated gas treatment capacity of 450m cfpd and a water injection capacity of 300,000 bpd. The FPSO will be spread moored at a water depth of about 1,800 m and will be able to store around 2m barrels of crude oil. The turnkey phase of the project is executed by a special purpose company (SPC) established by SBM Offshore and McDermott. SBM Offshore holds 70% and McDermott holds 30% equity ownership in this SPC. The FPSO will be fully owned by SBM Offshore.

The Yellowtail development is the fourth development within the Stabroek block, some 200 km offshore Guyana. EEPGL is the operator and holds a 45% interest in the Stabroek block, Hess Guyana Exploration holds a 30% interest and CNOOC Petroleum Guyana holds a 25% interest.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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