SBM Offshore chosen to build Guyana’s latest FPSO

SBM Offshore has signed a contract with American energy giant ExxonMobil to provide FEED works for an FPSO bound for Guyana’s offshore Whiptail project, the offshore technology provider announced on Friday.

The FPSO will be designed to produce 250,000 bopd, an associated gas production capacity of 540 mcf per day and water injection capacity of 300,000 bpd.

The vessel will be moored in water depths of around 1,630 metres and will be able to store around 2 million barrels of oil.

Following government approvals and the operator’s FID on the project, SBM Offshore will construct and install the FPSO.

The FPSO’s ownership is expected to be transferred to ExxonMobil at the end of the construction period, with SBM Offshore providing operations and maintenance activities.

“We are proud to announce ExxonMobil Guyana has awarded the contracts for a fifth FPSO from SBM Offshore in Guyana,”

The USD 12.9-billion Whiptail project will have an output of around 250,000 bopd and involve the drilling of up to 72 wells beginning in late 2024.

Installation of subsea equipment is expected to begin in Q2 2025 or early 2026.

The project is expected to come on line in 2027 and raise the consortium’s output in Guyana to 1.2 million bopd.

“We are proud to announce ExxonMobil Guyana has awarded the contracts for a fifth FPSO from SBM Offshore in Guyana,” Bruno Chabas, CEO of SBM Offshore.

In August 2023, ExxonMobil and its partners submitted plans to develop the Whiptail project, their sixth oil project in Guyana.

ExxonMobil and its partners are focusing on upping production of the Stabroek block, which contains more than 11 million boe of oil and gas and currently produces around 380,000 bopd.

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

ExxonMobil aims to have six producing FPSOs in Guyana by the end of 2027.