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Third FPSO sets sail for Guyana
Guyana’s third FPSO- Prosperity (Source: SBM)
Kaieteur News – The third Floating Production Storage and Offloading (FPSO) vessel- Prosperity-that will develop resources in the Payara field has set sail for Guyana.
The new FPSO will add to Guyana’s current fleet- the Liza Destiny and Liza Unity FPSOs. The Ministry of Natural Resources said yesterday on its Facebook page that the vessel departed Keppel Shipyard, Singapore around 9:27 on the morning of February 19, 2023.
Prosperity is expected to arrive in Guyana on April 18, 2023. It is the largest vessel constructed so far and will boost Guyana’s oil production by some 220,000 barrels of oil per day. Production at the Payara field was initially set to commence in 2024.
The FPSO is designed to produce 220,000 barrels of oil per day, with an associated gas treatment capacity of 400 million cubic feet per day and a water injection capacity of 250,000 barrels per day. It will be spread moored in a water depth of about 1,900 meters and will be able to store around 2 million barrels of crude oil.
The vessel, which measures 342M in length, 60m in width, and 25m in height, has a minimum lifespan of 20 years. Roughly 4,000 persons have been working on the FPSO which weights 110,000 metric tonnes.
First Lady Arya Ali officially dedicated the Prosperity vessel at a naming ceremony in Singapore earlier this month.
“This vessel offers another avenue to prosperity, an opportunity to build a future for our people, a future they deserve. The Prosperity is more than just a symbol of development though; she is a physical manifestation of the hard work and collaborative relationship between the people of Guyana and the collection of companies doing business in our oil and gas sector,” Mrs. Ali said.
Kaieteur News previously reported that Payara is located 200 kilometres offshore Guyana in 1,800 metres water depth. Ten drill centres are planned along with up to 41 wells, including 20 production and 21 injection wells. The project will utilise onshore infrastructure which includes shore bases, warehouses, storage and pipe yards, fabrication facilities, fuel supply facilities, and waste management facilities in Guyana.
The US$9 billion development will focus on an estimated resource base of about 600 million oil-equivalent barrels.
Currently, oil is being produced at the Liza One and Two projects in the Stabroek Block by Esso Exploration and production Guyana Limited (EEPGL), ExxonMobil’s subsidiary.
The average daily production at those fields equate to 380,000 barrels. This means, Guyana will now produce approximately 600,000 barrels of oil per day.
Even as production is poised to increase, the revenue from this source is hardly likely to significantly enlarge as well, due to the lopsided 2016 Production Sharing Agreement (PSA) Guyana signed with ExxonMobil.
Activists in Guyana have been lobbying for changes to be made to the 2016 PSA as Guyana receives a mere two percent royalty for its sweet light crude and settled for 50 percent profit sharing, after Exxon takes 75 percent of the earnings to clear its expenses.
The deal that the oil company often brags about to its shareholders, also forces Guyanese to pay their share of taxes, amounting to millions of US dollars each year. This figure is likely to further balloon as more operations come on stream.
In addition, the country is allowing ExxonMobil to operate offshore without full liability coverage in the event of an oil spill, which means that the risk is borne by Guyana. Another key provision that is lacking in the document is ring-fencing provision, which would avoid the oil company from using the petroleum revenue in one field to cover for expenses in another.
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