SBM Offshore Bags Whiptail FPSO Engineering Contract

SBM Offshore has been contracted to deliver FEED for an FPSO vessel for ExxonMobil's Whiptail development project in Guyana.  

Image by SparshFoto via iStock

SBM Offshore NV has been contracted to deliver Front End Engineering and Design (FEED) for a Floating Production, Storage and Offloading (FPSO) vessel for Exxon Mobil Corp.’s Whiptail development project in Guyana.

Should development plans for the project be approved by the Guyana authorities and should ExxonMobil reach a final investment decision to release the second phase of work, SBM would also build and install the FPSO. The company said in a media release that it has committed a Fast4Ward hull for the execution of the Whiptail project.

SBM Offshore said that the FEED contract triggers the initial release of funds by ExxonMobil Guyana Ltd., an ExxonMobil affiliate, to start FEED activities.

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 that will be repaid at the time of the FPSO’s transfer to the client, according to the news release.

SBM Offshore said it is expected to operate the FPSO through its integrated operations and maintenance.

SBM Offshore added it will design and construct the FPSO using its Fast4Ward program and its seventh new build, multi-purpose Floater hull, combined with several standardized topside modules. The FPSO will be designed to produce 250,000 barrels of oil per day, and will have an associated gas treatment capacity of 540 million cubic feet per day and a water injection capacity of 300,000 barrels per day. The FPSO will be spread-moored in a water depth of about 5,350 feet (1,630 meters) and will be able to store around two million barrels of crude oil.

Building on the experience to date of FPSOs Liza Destiny, Liza Unity, Prosperity and One Guyana, SBM Offshore continues to commit to local content development in Guyana by sourcing fabrication scope locally and integrating Guyanese engineers into the execution and operational teams, the company said.

“We are proud to announce ExxonMobil Guyana has awarded the contracts for a fifth FPSO from SBM Offshore in Guyana. This project demonstrates once more the value that our industry-leading Fast4Ward program brings to our clients and other stakeholders while delivering carbon efficient energy to the world,” SBM Offshore’s chief executive officer, Bruno Chabas, said.

Earlier this year, SBM Offshore secured a 10-year Operations and Maintenance Enabling Agreement with ExxonMobil Guyana for FPSOs Liza Destiny, Liza Unity, Prosperity and One Guyana.

-----The news is quoted from RIGZONE by Paul Anderson (www.rigzone.com)

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