Exxon inks MoU with Dutch Co. for next oil ship

Nov 10, 2022 News

Kaieteur News – American oil giant, ExxonMobil Corporation and Dutch shipbuilder, SBM Offshore have signed a Memorandum of Understanding (MoU) for another floating production storage and offloading (FPSO) vessel to serve a future project in Guyana.

Over the years, the Dutch company secured several contracts for the provision of FPSO vessels to ExxonMobil, including the Liza Destiny and Liza Unity, which are already operating in Guyana, and producing over 360,000 barrels of oil per day. SBM was also contracted to construct the Prosperity FPSO set to arrive next year to work in the Payara field as well as ONE GUYANA FPSO. The construction of the topside modules for the last one started in September 2022.

Liza Destiny, the first FPSO built for Guyana by SBM Offshore

In July, SBM Offshore revealed that the ONE GUYANA would cost US$1.75 billion. The project financing was secured by a consortium of 15 international banks. The Company expects to draw the loan in full, phased over the construction period of the FPSO.

The FPSO will be designed to produce approximately 250,000 barrels of oil per day will have associated gas treatment capacity of 450 million cubic feet per day and water injection capacity of 300,000 barrels per day. The FPSO will be moored in water depth of about 1,800 meters and will be able to store around two million barrels of crude oil.

The project is part of the Yellowtail development which is the fourth development within the Stabroek block, some 200 kilometres offshore Guyana. A week ago, Kaieteur News reported that Mitsui Ocean Development & Engineering Company (MODEC) which is based in Japan, signed a contract to perform Front End Engineering and Design (FEED) for a Floating Production, Storage and Offloading vessel to operate at Exxon’s “Uaru” development project in the Stabroek Block.

No approval

It should be noted however, that the award was made in the absence of Government’s approval for Exxon’s Field Development Plan for Uaru. Even the Environmental Impact Assessment (EIA) for the project has not been made public as is customary to allow for nationwide consultations. These engagements are usually made prior to the Environmental Protection Agency (EPA) issuing an Environmental Authorisation for the project. MODEC said it will design and construct the FPSO based on its M350 new-build design. The FPSO will be designed to produce 250,000 barrels of oil per day, will have associated gas treatment capacity of 540 million cubic feet per day, and water injection capacity of 350,000 barrels per day.

The FPSO will also be installed in a water depth of about 2000 meters, using a SOFEC Spread Mooring System and will be able to store around 2 million barrels of crude oil.

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