SBM Offshore has won work on the One Guyana vessel for ExxonMobil’s Yellowtail project, offshore Guyana.
Exxon announced the $10 billion final investment decision (FID) yesterday. SBM has built the three previous floating production, storage and offloading (FPSO) vessels for Exxon in Guyana. It also won front-end engineering and design (FEED) work on Yellowtail in late 2021.
SBM will construct, install, lease and operate the FPSO for two years. Following this point, it will transfer the vessel to Esso Exploration and Production Guyana.
Exxon has a 45% stake in the Stabroek Block, while Hess has 30% and CNOOC Ltd 25%.
SBM explained the One Guyana would use its Fast4Ward programme. This involves a multi-purpose hull with standardised topsides. The approach cuts costs and time to production.
The One Guyana will have 250,000 barrels per day of oil capacity, 450 million cubic feet per day of gas and 300,000 bpd of water injection.
SBM said it was committed to working with local companies and carrying out work in Guyana. It expects to recruit and employ more Guyanese engineers to work on the One Guyana.
While SBM will wholly own the FPSO, it will work on the turnkey phase under a special purpose company. SBM has a 70% stake in the company, while McDermott has the remaining 30%.
Guyana signed the petroleum production licence for Yellowtail on April 1 with Exxon’s local unit. Bayphase Oil and Gas Consultants and the Redford Group carried out a review of the Yellowtail development plan.
In addition to developing the country’s offshore oil, the government is also eager to develop gas. Guyana has talked about building a pipeline from the Liza field to bring gas onshore, in order to replace its current oil-fired power generation.
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