Dutch vessel manufacturing company, SBM Offshore, was pleased to announce today that Esso Exploration and Production Guyana Limited (EEPGL), an affiliate of Exxon Mobil Corporation, has confirmed the award of contracts for the next phase of the Payara development project located in the Stabroek block in Guyana.
Under these contracts, SBM Offshore will construct, install and then lease and operate the Prosperity Floating Production Storage and Offloading (FPSO) vessel for a period of up to two years, after which the FPSO ownership and operation will transfer to EEPGL.
SBM said that the award follows completion of front-end engineering and design studies, completion of the multi-purpose hull, receipt of requisite government approvals and the final investment decision on the project by ExxonMobil and block co-venturers.
Further to this, SBM said that the Prosperity FPSO will utilize a design that largely replicates the design of the Liza Unity FPSO. As such, the design is based on SBM Offshore’s industry leading Fast4Ward® program that incorporates the Company’s new build, multi-purpose hull combined with several standardized topsides modules.
Guyana Standard understands that the FPSO will be designed to produce 220,000 barrels of oil per day, will have associated gas treatment capacity of 400 million cubic feet per day and water injection capacity of 250,000 barrels per day. The FPSO will be spread moored in water depth of about 1,900 meters and will be able to store around 2 million barrels of crude oil.
As a result of the award from EEPGL, SBM Offshore also anticipates the award of contracts to Guyanese companies for work to be performed in Guyana. In this regard, the company disclosed that it is looking at executing scope for fabrication and coating of a portion of the light structural steel for the FPSO in Guyana, which would be a first for SBM Offshore in country.
Additionally, SBM Offshore said it is preparing to recruit and employ Guyanese engineers into the Payara project team. It was noted that both activities are focused on development of Guyanese capacity, building on efforts to date for the Liza Destiny and Liza Unity FPSOs.
FINAL INVESTMENT
The contract that was awarded to SBM, comes on the heels of the approval ExxonMobil received from the government for Payara, its third development project in the Stabroek Block which is expected to produce up to 220,000 barrels of oil per day after startup in 2024. Following this, ExxonMobil made its final investment decision (FID) which totals US$9B .
ExxonMobil said that the FID will target an estimated resource base of about 600 million oil-equivalent barrels. It was further noted that 10 drill centers are planned along with up to 41 wells, including 20 production and 21 injection wells.
