Latest update December 7th, 2024 1:49 AM
Jul 12, 2022 News
Kaieteur News – Guyana currently has two Floating Production Storage and Offloading (FPSO) currently producing crude oil from the Stabroek Block—the Liza Destiny and Liza Unity and a third, is currently under construction.
That FPSO named the Prosperity will be used to produce the Payara development and is the largest of the first three production vessels to be put into operation in Guyana with a capacity of 220,000 barrels per day. The FPSO will be spread-moored in water depth of about 1,900 meters and will be able to store around 2 million barrels of crude oil. The project is part of the Payara development, which is the third development within the Stabroek Block, located 200 kilometers offshore Guyana.
According to recent financial statements filed by the oil companies, in excess of $94B has already been deducted as part of the 75 percent cost oil recovery, to repay expenses incurred by the oil companies. According to statements filed by Hess Guyana Exploration Limited, in 2020 the first year of oil production in Guyana, it turned over $131,66,534,497 ($13.2B) while the following year a sum of $14,834,549,944 ($14.6B). Collectively it would represent $28,001,084,441 ($28B) over the two years being set aside by Hess for the Prosperity vessel.
The monies are reflected as advances to operator in the company’s statement of financial position for the two years.
Under the Financial Notes, accompanying the statements, it was explained that the money “represents cash payments to the operator for support of construction of the prosperity floating production, storage and offloading vessel, which upon completion will be installed at the Payara field.” The Operator of the Stabroek Block within which the Liza I,II and Payara oil field are located is Esso Exploration and production Guyana Limited (EEPGL)—ExxonMobil Guyana—which holds a 45 percent working interest. Hess commands a 30 percent interest while the other partner in the block CNOOC Petroleum Guyana Limited controls the remaining 25 percent share.
As such, it would mean that EEPGL would be responsible for $42,001,626,662 ($42.1B) while CNOOC would be responsible for $23,334,237,034 ($23.3B). Collectively the advances for Payara over the two years, based on Hess’ filings, would be $93,336,948,137 ($93.4B).
SBM Offshore the Dutch Floater Specialist that secured the contract for the Prosperity, in addition to the Unity and Destiny had disclosed that the vessel which will be used in the Stabroek Block’s Payara Project will cost US$1.05B (over GYD $200B). SBM at the time of the announcement had said the financing was secured from a consortium of 11 international banks while adding that it expects to draw the loan in full, phased over the construction period of the Prosperity Vessel.
Kaieteur News understands that the Prosperity FPSO will utilise a design that largely replicates the design of the Liza Unity FPSO, which is on its way to Guyana for hook-up in the Liza Phase Two Project. As such, the design is based on SBM Offshore’s industry-leading Fast4Ward® programme that incorporates the company’s new build, multi-purpose hull combined with several standardised topsides modules.
Furthermore, SBM said 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 converted Very Large Crude Carrier (VLCC) to be converted into the Prosperity FPSO is presently in the Keppel Shipyard in Singapore where its fabrication is being facilitated. That vessel is expected to come on stream with first oil in 2024 and according to reports is currently ahead of schedule.
Dec 07, 2024
ExxonMobil Global Super League… Kaieteur Sports- Rangpur Riders dominated Cricket Victoria to win by 56 runs and become the inaugural ExxonMobil Guyana Global Super League (GSL) champions on a...…Peeping Tom Kaieteur News- Democracy, they say is messy, unpredictable, and often misunderstood. But in Guyana, democracy... more
By Sir Ronald Sanders Kaieteur News- As gang violence spirals out of control in Haiti, the limitations of international... more
Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]