By Kiana Wilburg
SBM Offshore, the Dutch company which is building two more Floating Production Storage and Offloading (FPSO) vessels to be used in the Stabroek Block, is expected to recover the full cost of its investments after two years of leading operations for each unit. This was noted in the latest annual report for the company.
In that document, the firm specifically stated that the investment in FPSOs Liza Destiny and Liza Unity are expected to be recovered through the sale of these vessels to the client, ExxonMobil. While the sale price remains unknown, public financial statements by SBM reveal that the Liza Destiny which is Guyana’s first Floating Production Storage and Offloading vessel, will be leased for approximately US$1.2B while the second FPSO, the Liza Unity, will be leased for approximately US$1.6B.
The FPSO Liza Destiny had arrived in Guyanese waters in August 2019 and, following receipt of its certificate acceptance from the client, joined SBM Offshore’s fleet on November 1, 2019. First oil was achieved on December 20, 2019.
With respect to the Liza Unity, ExxonMobil had awarded the Liza Unity contracts to SBM Offshore on May 10, 2019. Under these contracts, the company will construct, install and thereafter lease and operate FPSO Liza Unity for a period of up to two years after which the ownership and operations will transfer to ExxonMobil. The FPSO Liza Unity design is based on the Fast4Ward® program as it incorporates the Company’s new-build, multi-purpose hull combined with several standardized topsides modules. On October 16, 2019 the Company had announced that it completed the project financing of FPSO Liza Unity for a total of US$1.14 billion.
In November last year, the company was awarded contracts to perform front end engineering and design for a third FPSO called Prosperity which would be used for ExxonMobil’s Payara development project offshore Guyana. The award was the first under the long-term FPSO supply agreement with ExxonMobil and secured SBM Offshore’s third Fast4Ward hull under construction. The next phase of the FPSO Prosperity project remains subject to government approvals, project sanction and authorization.
Following authorization to proceed with the next phase, the Company will construct, install and thereafter lease and operate FPSO Prosperity for a period of up to two years after which the ownership and operations will transfer to EEPGL, ExxonMobil’s subsidiary. FPSO Prosperity will utilize a design that largely replicates the design of FPSO Liza Unity. As such, FPSO Prosperity will become the second vessel built under the Company’s Fast4Ward® program.
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