Following its completion and delivery of the Liza Destiny, Guyana’s first Floating Production Storage and Operating (FPSO) vessel, SBM Offshore has successfully secured a Long Term Agreement with ExxonMobil for its future operations offshore Guyana.
The agreement covers potential FPSO orders and establishes the general legal framework and specific terms in relation to the engineering, procurement, construction and installation work regarding potential contracts for leased FPSOs. It will also include Build-Operate-Transfer projects that generally cover a short lease term.
In addition to this, the Dutch firm noted that the relationship it has with ExxonMobil is well-established and goes back over four decades, starting in the 1970s. During that period, SBM Offshore said it has supplied more than 10 floating systems to ExxonMobil in five countries, including five FPSOs, deep water offloading systems and an FSO vessel. Also, multiple major projects are currently in various stages of progress for Exxon.
Bruno Chabas, the Chief Executive Officer (CEO) of SBM Offshore said that the company is pleased with the long-term FPSO supply agreement while noting that it is a continuation of the long history of successful team work between the two.
Furthermore, SBM, in its 2019 Half-Year Earnings, noted that FPSO Liza Unity which will go towards the Liza Phase Two Project is progressing according to schedule. SBM said that the standard multipurpose hull was recently launched from the dry dock in China. It also noted that the engineering is progressing as planned, benefiting from the Fast4Ward® module catalogue.
It was also noted that the Liza Destiny contract covers 10 years of lease and operation but based on discussions with ExxonMobil, SBM said it is expected that the client will purchase the unit after a period of up to two years of operations. With respect to the Liza Unity contract, SBM said that this covers a maximum period of two years of lease and operate within which the unit will be purchased by Exxon. (See link for company’s 2019 Half-Year Earnings Report: https://www.sbmoffshore.com/wp-content/uploads/2019/08/SBMO-2019-HALF-YEAR-EARNINGS.pdf)
