SBM Offshore wins $3-bln O&M deal in Guyana

GEORGETOWN, May 2, 2023 – SBM Offshore has signed a USD 3-billion contract for operations and maintenance works on four of ExxonMobil’s FPSOs in Guyana, the offshore energy engineering company announced on Tuesday.

The 10-year contract covers ExxonMobil’s Liza Destiny, Liza Unity, Prosperity and One Guyana FPSOs and involves SBM Offshore seconding the American energy giant’s employees in key onshore and offshore positions to combine experience and resources.

“This integrated operation model is the first of its kind in the industry and extends our relationship with ExxonMobil Guyana by further integrating our teams,” said Bruno Chabas, CEO of SBM Offshore.

ExxonMobil’s lease agreements will remain unchanged, with a 10-year lease with the Liza Destiny FPSO and up to two-year leases with the remaining FPSOs after which ownership will transfer to the project’s operator.

ExxonMobil operates the Stabroek block with a 45% stake, while partners Hess Corporation holds a 30% stake and China National Offshore Oil Corporation holds the remaining 25% stake.

The Liza Destiny and the Liza Unity are currently stationed and producing at the field. Net production from the two assets was 112,000 bopd in Q3 2023.

The two additional FLNGs are under construction that will be deployed at the Payara and Yellowtail fields on the block, the Prosperity and One Guyana respectively.

The Prosperity FLNG has a planned capacity of 220,000 bopd. The asset arrived on the Stabroek in April 2023 and hook up and commissioning activities are underway.

The One Guyana FLNG will have a production capacity of 250,000 bopd, with first production anticipated in 2025.

ExxonMobil aims to have six producing FPSOs in Guyana by the end of 2027, which will bring Guyana’s oil and gas production to more than 1.2 million bopd.

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