SBM hands over ‘Liza Destiny’ to Guyana counterparts

Dec 24, 2019 News

…confirms ExxonMobil always targeted December first oil

Guyanese have been told that ExxonMobil Guyana and its joint venture partners in the Stabroek Block began producing oil from the Liza I offshore oil field on Friday—months ahead of schedule.
It turns out however that December first oil was always ExxonMobil’s scheduled start up.
This was confirmed by SBM Offshore, the Dutch company that was hired to build the Liza Destiny, Guyana’s first Floating Production, Storage and Offloading (FPSO) vessel, when it officially handed over the facility to its Guyana counterparts.
SBM Offshore’s Chief Executive Officer, Bruno Chabas, in making the announcement yesterday said, “Our teams have done an excellent job by completing the project well in line with our client’s schedule.”
Elaborating on the schedule for the FPSO, Chabas said, “The delivery time from the engineering study phase until first oil, three years, is impressive and a clear testimony of our capabilities and industry leading experience.”
According to Chabas, “We are looking forward to further generating value for our client, ExxonMobil, and in particular with respect to making a contribution towards Guyana becoming a significant oil producing country.”
The company’s managing director, Oivind Tangen, in making the announcement noted that, “we remain highly focused on diligently moving through the final steps, with Health and Safety remaining a first priority.”
He too announced that, “this milestone also marks the formal hand over of the project to our Operations organisation in Guyana, an organisation that is supported by our global organisation…
“Together, we shall ensure a responsible operatorship and continuously strive for operational excellence in all our activities.”
The FPSO is installed at the Liza field in the Stabroek Block, some 200 kilometres offshore Guyana.
ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) is the operator who holds 45 per cent interest in the Stabroek Block.
Hess Guyana Exploration Ltd. holds 30 per cent interest and China National Offshore Oil Company (CNOOC) Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 per cent interest.
The Liza Destiny constructed in Singapore, is a converted Very Large Crude Carrier (VLCC) that was rebuilt for ExxonMobil.
According to SBM Offshore’s projections, following start up last Friday, the vessel is expected to house year round about 60 to 70 crew members but is built to accommodate 120 people aboard.
The 60 to 70 crew members will be operating on a daily basis with support services sourced in Guyana.
On shore, SBM Offshore has also indicated using a team of about 20 persons initially, particularly for logistics for its supplies and technical support such as the provision of training for staff.
The lease and operation contract for the FPSO between EEPGL and SBM Offshore includes an initial period of ten years with extension options up to an additional ten years.
The company has since already indicated an intention to stay in Guyana throughout the course of the ExxonMobil operations.
Discoveries to date in the Stabroek Block have reached in excess of 6.6 billion barrels of oil equivalent. Exxon has already begun construction of a second FPSO—the Liza Unity—for production in the Liza Deep/Liza II discovery.
The announcement of oil production in Guyana came on Friday last, a day which will now be known as Guyana Petroleum Day—four months ahead of what was the “scheduled” March 2020 first oil.

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