ExxonMobil initiates process to purchase Liza Destiny, Liza Unity vessels from SBM

Jun 24, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – ExxonMobil Guyana’s Vice President and Business Service Manager, Phillip Rietema recently confirmed that the company is progressing with plans to purchase the Liza Destiny and Liza Unity floating, production, storage and offloading (FPSOs) vessels.

Both ships were built by world renowned shipbuilder SBM Offshore. The Liza Destiny was built to the tune of US$1B while its sister, the Liza Unity was built for US$1.2B. Both vessels operate within the Liza field and produce approximately 380,000 to 400,000 barrels of oil per day.

The Very Large Crude Carrier (VLCC) ‘Tina’ was selected by SBM Offshore for the conversion process for the Liza Destiny. The conversion phase began in November 2017. It was designed to produce up to 120,000 barrels of oil per day. It has an associated gas treatment capacity of circa 170 million cubic feet per day and water injection capacity of circa 200,000 barrels per day. The converted VLCC FPSO was spread moored in water depth of 1,525 meters and is able to store 1.6 million barrels of crude oil.

The Liza Unity floating, production, storage and offloading vessel

As for the Liza Unity FPSO, it was designed to produce approximately 220,000 barrels of oil per day, to have associated gas treatment capacity of 400 million cubic feet per day and water injection capacity of 250,000 barrels per day. The FPSO was spread moored in water depth of about 1,600 meters and is able to store around 2 million barrels of crude oil. There are a total of 19 topsides modules.

The Liza Unity FPSO represents SBM Offshore’s first Fast4Ward® design, benefitting from standardization of the project’s execution plan and using a fully completed and commissioned MPF hull, which sets the benchmark for future FPSO projects.

The Liza Destiny floating, production, storage and offloading vessel

The Liza Unity FPSO has also been awarded the SUSTAIN-1 notation by ABS, the Classification Society. This means that the design and construction of the unit is assessed against and adheres to the requirements of the ABS Guide for Sustainability Notations, aligned with the applicable UN Sustainable Development Goals. The Liza Unity is also the world’s first FPSO to achieve such recognition for sustainability for its design, documentation and operational procedures. Examples of features recognized by the SUSTAIN-1 class notation include energy efficiency management, mitigation of ozone depleting substances and management of hazardous materials throughout the life cycle.

In its 2019 annual report, SBM had said it would recover the full cost of its investments on the two vessels, through a sale to the client, ExxonMobil. In the meantime, significant interests are being paid to support leasing and operating arrangements.

According to the 2022 financial statements for ExxonMobil’s affiliate, Esso Exploration and Production Guyana Limited (EEPGL) paid about $28.5B in lease interests for the two vessels over the period 2021 and 2022. Such leasing costs would continue to be incurred until the sale is closed. Notably, all costs for leasing as well as purchasing would be supported by Guyana’s oil.