ExxonMobil Guyana has entered into a 10-year Operations and Maintenance Enabling Agreement with Dutch floater specialist, SBM Offshore for the maintenance and operation of its fleet of floating production, storage and offloading (FPSO) vessels. This includes Liza Destiny, Liza Unity, Prosperity and ONE GUYANA.
In its announcement today, SBM said that the FPSO fleet will provide support to ExxonMobil’s exploration and production activities in the Stabroek Block, offshore Guyana, and the agreement will set new lease terms for the fleet’s operation until 2033.
It further noted that the agreement includes an Integrated Operation Model, combining SBM Offshore and ExxonMobil Guyana’s resources and expertise to enhance team efficiency and foster synergies. The model includes seconding ExxonMobil Guyana employees in some key onshore and offshore positions. SBM Offshore also expects the agreement to have a significant impact on its revenue backlog, which is estimated to be around US$3 billion, based on various operating and maintenance assumptions.
The company was keen to note that the lease terms and durations remain the same for all units, with the Liza Destiny leased for 10 years and up to two years for Liza Unity, Prosperity and ONE GUYANA, after which the FPSOs’ ownership will transfer to the client.
On the heels of the announcement, SBM’s Chief Executive Officer (CEO), Bruno Chabas said, “We are very pleased with the contract concluded with ExxonMobil Guyana leveraging both companies’ recognized operating excellence. This contract capitalizes on our developments in Guyana to date, positioning the Company for long-term operations in the country. This Integrated Operation Model is the first of its kind in the industry and extends our relationship with ExxonMobil Guyana by integrating further our teams. We believe it is the optimal solution to achieve excellence in the operation of Guyanese assets bringing value to all stakeholders and setting a new performance benchmark for the industry”.
Currently, the Liza Destiny and Unity FPSOs are producing 380,000 barrels of oil per day offshore Guyana, while the Prosperity is scheduled for first oil in the fourth quarter of 2023. The ONE GUYANA FPSO is currently under construction in Singapore receiving its final touches and is expected to deliver first oil by 2025.
SBM Offshore is known for designing, building, installing and operating offshore floating facilities for the offshore energy industry and has been a longstanding contractor for ExxonMobil.
