ExxonMobil has awarded front-end engineering and design (FEED) work on the Whiptail FPSO in Guyana to SBM Offshore.
SBM said that, following a final investment decision (FID), it would also construct and install the FPSO. The builder said the FEED contract would provide an initial release of funds and would also commit a Fast4Ward hull for Whiptail.
“We are proud to announce ExxonMobil Guyana has awarded the contracts for a fifth FPSO from SBM Offshore in Guyana,” said SBM CEO Bruno Chabas.
“This project demonstrates once more the value that our industry-leading Fast4Ward® program brings to our clients and other stakeholders while delivering carbon efficient energy to the world.”
SBM said it would use its seventh newbuild hull. The vessel would be able to produce 250,000 barrels per day of oil with 540 million cubic feet per day of associated gas treatment capacity. It would also be able to provide 300,000 bpd of water injection.
The plan sees the FPSO spread moored in 1,630 metres of water. It can store around 2 million barrels of oil.
The builder signed a memorandum of understanding in November 2022, reserving its seventh Fast4Ward vessel for Exxon in Guyana.
SBM struck a 10-year operations and maintenance agreement with Exxon in May this year, covering the Liza Destiny, Liza Unity, Prosperity and ONE GUYANA FPSOs. The company said it would provide O&M services for Exxon for the new Whiptail FPSO as well.
SBM will finance the FPSO’s construction through senior loans. Once construction is completed, it will transfer the ownership to Exxon, at which point it will repay the loans.
The Prosperity FPSO arrived in Guyana in April this year. The 220,000 bpd vessel is due to reach first oil before the end of the year. The 250,000 bpd ONE GUYANA should begin producing in 2025.