Guyanese still in the dark on leasing costs for oil ships

Apr 06, 2022 News

– as Exxon hands SBM another contract to build 4th FPSO

By Kiana Wilburg

Kaieteur News – Dutch manufacturer, SBM Offshore has been the preferred shipbuilder for Guyana’s floating, production, storage and offloading (FPSO) vessel since 2015. To date, the company has built the Liza Destiny FPSO, the Liza Unity and the Payara FPSO, each costing approximately US$1B, US$1.2B and US$1.6B respectively. What remains unknown however, are the leasing arrangements in place for these vessels.
While Guyanese continue to remain in the dark on these leasing bills which are being paid for from its Stabroek Block oil resources, SBM Offshore was nonetheless pleased to announce on Tuesday that Esso Exploration and Production Guyana Limited (EEPGL), an affiliate of Exxon Mobil Corporation, handed it another contract to build Guyana’s fourth FPSO.
That FPSO called the ONE GUYANA will support the US$10B Yellowtail development project located in the Stabroek Block in Guyana. Under this latest contract, SBM Offshore said it will construct, install and then lease and operate the ONE GUYANA FPSO for a period of up to two years, after which the FPSO ownership and operation will transfer to EEPGL. The award it said follows completion of front-end engineering and design studies, receipt of requisite government approvals and the final investment decision on the project by ExxonMobil and block co-venturers.
Kaieteur News understands that the FPSO ONE GUYANA’s design is based on SBM Offshore’s industry leading Fast4Ward® programme that incorporates the Company’s new build, multi-purpose floater hull combined with several standardised topsides modules. SBM was keen to note that the FPSO will be designed to produce 250,000 barrels of oil per day, will have associated gas treatment capacity of 450 million cubic feet per day and water injection capacity of 300,000 barrels per day.
The FPSO will also be spread moored in water depth of about 1,800 metres and will be able to store around two million barrels of crude oil.
SBM Offshore said it is committed to work with Guyanese companies for work to be performed in Guyana and is preparing to further recruit and employ Guyanese engineers into the ONE GUYANA project team.
The Yellowtail development is the fourth development within the Stabroek Block, circa 200 kilometres offshore Guyana. EEPGL is the operator and holds a 45 percent interest in the Stabroek Block, Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds a 25 percent interest.

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