ExxonMobil Guyana has awarded SBM Offshore contracts for front end engineering and design (FEED) for a floating production, storage and offloading vessel. The agreement for the Longtail development project allows for the initial release of funds to begin studies and secure a standardized hull.
The ownership of the vessel is expected to be transferred to the client upon completion of construction and before operations begin, according to SBM Offshore. Following the transfer, senior loans used to partially fund construction costs are expected to be repaid.
SBM Offshore will operate the vessel through a model combining its expertise with that of ExxonMobil, according to the contract. This arrangement will utilise operational experience from other units currently active in the region.
The vessel is designed to process 1,200 million cubic feet (34 million cubic metres) of gas per day and produce 250,000 barrels of condensate per day. Positioned in water depths of approximately 1,750 metres, the unit will have a storage capacity of roughly two million barrels.
This project follows the deployment of the Liza Destiny, Liza Unity, Prosperity, ONE GUYANA and Jaguar vessels.
SBM Offshore noted that it intends to source fabrication locally and include Guyanese engineers in the operational teams.
Chief Executive Officer Øivind Tangen commented that the project highlights the company’s experience with large-scale gas-processing systems.
“SBM Offshore is well positioned to support the Longtail development, a major gas play demanding the highest gas handling capacity ever deployed on an FPSO,” Tangen said.
The construction and installation of the vessel remain subject to government approvals of the development plan and a final investment decision by ExxonMobil. SBM Offshore said it will utilise its ninth new build multi-purpose floater hull combined with standardized topsides modules for the project.