Latest update November 12th, 2024 1:00 AM
Latest News
- Govt. vows crackdown on Guyanese aiding foreign companies to flout Local Content law
- Firm involved in audit of Exxon’s expenses has licence suspended
- Gaza mother struggling to feed children says only death can end their suffering
- Fire destroys supermarket, damages hotel in Berbice
- Car dealer slapped with 68 charges over $51.57M fraud
ExxonMobil awards over US$1B in Payara development contracts
Kaieteur News – ExxonMobil has awarded in excess of US$1B in Payara development contracts already, with the project being approved just two days ago by Minister of Natural Resources, Vickram Bharrat and Executive Director of the Environmental Protection Agency (EPA), Sharifah Razack.
The Prosperity FPSO in the making.
The contracts were awarded to Dutch firm, SBM Offshore and French company, TechnipFMC.
SBM announced early yesterday that ExxonMobil’s local subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), awarded it several contracts for the next phase of the project- to construct, install, then lease and operate the Prosperity Floating Production, Storage and Offloading (FPSO) vessel for a period up to two years.
After that period, the ownership of the vessel will be transferred to ExxonMobil. The arrangement is similar to the deals for the Liza Destiny and Unity FPSOs.
ExxonMobil had contracted SBM late last year for front-end engineering and design (FEED), and completion of the multi-purpose hull. The hull was delivered to SBM last month after its completion by Chinese shipbuilder Shanghai Waigaoqiao Shipbuilding (SWS).
The Prosperity FPSO design will be largely similar to the Liza Unity, which is also under construction in Singapore. They are both designed to produce 220,000 barrels of oil per day. Prosperity will have capacity to treat associated gas at 400 million cubic feet per day, as well as water injection capacity of 250,000 barrels per day.
In its permit, Government required ExxonMobil to include tie-in points and space for produced water injection equipment, in its base design, consistent with its commitment to advocate for discharge of produced water at internationally accepted standards.
SBM said that it is looking at executing scope for the fabrication and coating of a portion of the light structural steel for the vessel in Guyana, among other local content considerations.
TechnipFMC also announced that it received a large subsea contract for the Payara development, noting that it considered “large” contracts to be between US$500M-US$1B. The company is expected to manufacture and deliver the subsea production system, including 41 enhanced vertical deep water trees and associated tooling, six flexible risers and ten manifolds along with associated controls and tie-in equipment. Exxon had contracted Saipem to construct the subsea facility for the FPSO, last year.
ExxonMobil had pressured Guyana for months to approve the contract so that it could make its Final Investment Decision (FID) which it did immediately after government green-lit the project.
The company said in a recent release that the total development cost for Payara will be US$9B, which is expected to be recovered by ExxonMobil from the sale of the Payara well crude.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
If the system is not broken why try to fix it?
…Peeping Tom kaieteur News- A few years ago, I was at a private hospital watching the workers “clock-in” to work... more
Rising Gun Crimes in the Caribbean: Urgent Action required by all
By Sir Ronald Sanders Kaieteur News – There is an alarming surge in gun-related violence, particularly among younger... more
Weekend Cartoon
