Dutch floater expert SBM Offshore has been awarded contracts by supermajor ExxonMobil to perform FEED studies for an FPSO for the Longtail development project in Guyana.
The FEED contracts award triggers the initial release of funds by ExxonMobil to begin FEED activities and allocate a Fast4Ward hull for the Longtail development project.
SBM Offshore will further construct and install the FPSO, subject to government approval of the development plan, ExxonMobil’s final investment decision, and project approval for the release of 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 the start of operations in Guyana. The construction costs are expected to be partially funded by senior loans, which will be repaid upon transfer of the FPSO to the client.
SBM Offshore is expected to operate the FPSO through its integrated operations and maintenance model, leveraging key learnings and the operational excellence of the units currently deployed in Guyana.
The FPSO will be designed to process 1.2 tcf of gas per day and produce 250,000 barrels of condensate per day. The FPSO will be spread moored in a water depth of about 1,750 m and will be able to store around 2m barrels of condensate.
“We are proud to receive this sixth FPSO award from ExxonMobil Guyana. SBM Offshore is well-positioned to support the Longtail development, a major gas play that demands the highest gas-handling capacity ever deployed on an FPSO,” said Øivind Tangen, SBM Offshore’s CEO.
