Dutch manufacturer secures US$1.75B loan for Guyana’s fourth oil ship

Jul 22, 2022 News

Kaieteur News – Dutch manufacturer, SBM Offshore was pleased to announce on Thursday that it has completed the project financing of the ONE GUYANA floating, production, storage and offloading (FPSO) vessel—Guyana’s fourth and largest oil ship—for a total of US$1.75 billion.

The ONE GUYANA hull on its way from China to Singapore

SBM said the project financing was secured by a consortium of 15 international banks. The company said it expects to draw the loan in full, phased over the construction period of the FPSO. The Dutch firm said the financing will become non-recourse once the FPSO is completed and the pre-completion guarantee has been released. Non-recourse financing, for those who may not be aware, is a type of commercial loan requiring only repayment based upon proceeds generated from the project.

Kaieteur News understands that the FPSO ONE GUYANA builds on the experience to date of FPSOs built for the country by SBM. These include Liza Destiny, Liza Unity and Prosperity. 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.

SBM said the FPSO will be designed to produce approximately 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.

Additionally, the FPSO will be spread moored in water depth of about 1,800 metres and will be able to store around two million barrels of crude oil.

The project is part of the Yellowtail development which is the fourth development within the Stabroek block.

Kaieteur News previously reported that Yellowtail is expected to cost US$10B, will include six drill centres and up to 26 production and 25 injection wells.

In the Stabroek Block, Esso Exploration and Production Guyana Limited, an affiliate of Exxon Mobil Corporation, is the operator and holds a 45 percent interest in the Stabroek Block.

Meanwhile, 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.

To date, the partners have discovered 11 billion oil-equivalent barrels. The company anticipates up to 10 projects on the Stabroek Block to develop this resource.