Latest update April 19th, 2024 12:59 AM
Oct 27, 2021 News
…to increase Stabroek Block production, 340,000 barrels per day
Kaieteur News – Guyana’s second Floating Production Storage Offloading (FPSO) Vessel—the Liza Unity—has arrived in Guyana, having left Singapore in September last and will now spread moored, using multiple anchors, in the Liza II Oil Field, the second development in the Stabroek Block.
The vessel was constructed by SBM Offshore and is being leased by Esso Exploration and Production Guyana Limited (EEPGL)—ExxonMobil Guyana—the Stabroek Block Operator.
Having arrived ahead of schedule, the vessel will now be spread moored in Liza II Field before being connected to the subsea installations, including umbilical(s), risers and flow lines.
Saipem, another of ExxonMobil tier one contractors, had secured the contract for the subsea installations and has been working for some time ahead of the arrival of the Liza Unity preparing the subsea aspect of the operations.
The Ministry of Natural Resources in a public statement yesterday said, it “welcomes the arrival of the Liza Unity floating production storage, and offloading (FPSO) vessel in the Stabroek Block offshore Guyana, after traveling for approximately 53 days and in excess of 11,000 nautical miles on its journey from Singapore.”
The vessel, it said, is twice the size of the first FPSO; Liza Destiny.
It is expected to commence operations by 2022 and has a production target of 220,000 barrels of oil per day.
As such, it means that together with the Liza Destiny, the two FPSO’s collectively would be producing some 340,000 barrels per day from the Stabroek Block starting next year.
The Liza Phase II breakeven cost of production is estimated at US$25 per barrel, while the first FPSO—the Liza Destiny—produces at about US$35 per barrel.
Once production kicks off, Liza Phase II is expected to develop to approximately 600 million barrels of oil.
The project is set to cost Guyana approximately US$6 billion, and includes a lease capitalisation cost of approximately US$1.6 billion for the vessel, which will be moored in water depth of about 1,600 meters, and will be able to store approximately two million barrels of crude oil.
Dutch conglomerate, SBM Offshore, was awarded the front-end engineering and design (FEED) contract for the FPSO in July 2018.
The FPSO design is based on SBM Offshore’s Fast4Ward, which incorporates a new build design utilizing a multipurpose hull combined with several standardised topsides modules.
The Maritime Administration Department (MARAD) has in recent weeks, issued several notices disclosing that preparations were being made in the ExxonMobil-led Stabroek Block for the installation of the Liza Unity.
These activities are expected to conclude on December 31, 2021 and all mariners are required to maintain a wide berth to the OCV NORMAND INSTALLER, which will be supporting installation of the FPSO.
The Liza Unity, according to its builders, is the most ‘environmentally friendly’ of such vessels to be in operation worldwide.
SBM Offshore, the Dutch floater specialists contracted to outfit the vessel for production from the Liza II oil field, in announcing that the vessel is en route to Guyana, disclosed that the FPSO has also been awarded the SUSTAIN-1 notation by American Bureau of Shipping (ABS), the Classification Society.
According to SMB Offshore, “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 the world’s first FPSO to achieve such recognition for sustainability for its design, documentation and operational procedures.
It was noted that examples of features recognised by the SUSTAIN-1 class notation include, energy efficiency management, mitigation of ozone depleting substances and management of hazardous materials throughout the life cycle of the vessel.
The Liza Unity FPSO started its voyage to Guyana on September 3, 2021, having departed the Keppel shipyard in Singapore.
The Liza Unity FPSO is also designed 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 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. There is a total of 19 topsides modules.
The vessel also represents SBM Offshore’s first Fast4Ward® design, benefitting from standardization of the project`s execution plan and using a fully completed and commissioned multipurpose floater (MPF) hull, which sets the benchmark for future FPSO projects.
Where is the BETTER MANAGEMENT/RENEGOTIATION OF THE OIL CONTRACTS you promised Jagdeo?
Apr 19, 2024
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