Latest update April 18th, 2024 12:59 AM
Oct 17, 2019 News
SBM Offshore, the Dutch firm that constructed Guyana’s first Floating Production Storage and Offloading (FPSO) vessel, the Liza Destiny, was pleased to announce, yesterday, that it was able to complete the project financing for the second FPSO called Liza Unity for a total of US$1.14 billion.
The company said that the project financing was secured by a consortium of nine international banks while noting that it expects to draw the loan in full, phased over the construction period of the FPSO. Kaieteur News understands that the financing will become non-recourse once the FPSO is completed and the pre-completion guarantees have been released.
It was further explained that the Liza Unity FPSO’s design is based on SBM Off shore’s industry leading Fast4Ward® programme as it incorporates the Company’s new build, multi-purpose hull combined with several standardized topsides modules.
This newspaper understands that the FPSO will be designed to produce 220,000 barrels of oil per day, will have associated gas treatment capacity of 400 million cubic feet per day and water injection capacity of 250,000 barrels per day.
The FPSO will be spread moored in water depth of about 1,600 meters and will be able to store around 2 million barrels of crude oil.
LONG TERM AGREEMENT
A few weeks ago, SBM Offshore also inked a Long-Term Agreement with ExxonMobil covering potential future FPSO orders. SBM noted in a missive to the media that this agreement is non-exclusive and establishes the general legal framework and specific terms in relation to the engineering, procurement, construction and installation work regarding potential future contracts relating to leased FPSOs, which includes Build-Operate-Transfer projects that generally cover a short lease term.
The company noted that the relationship between SBM Offshore and ExxonMobil is well-established. It goes back over four decades, starting in the 1970s. During this period, SBM Offshore said it has supplied more than 10 floating systems to ExxonMobil in five countries, including five FPSOs, deep water offloading systems and an FSO. Additionally, multiple major projects are currently in various stages of progress.
Currently, ExxonMobil is ramping up efforts to secure an environmental permit for its third field development project in the Stabroek Block called Payara. It recently noted that the FPSO for this field will be bigger than the Liza Destiny and will be called “Prosperity”.
The Stabroek Block which will be holding the said FPSOs is 6.6 million acres (26,800 square kilometers). ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), is the main operator and holds 45 percent interest.
Hess Guyana Exploration Ltd. holds 30 percent interest and CNOO/ Nexen Petroleum Guyana Limited holds 25 percent interest.
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