Dutch FPSO leasing and operation specialist SBM Offshore has signed a 10-year operations and maintenance enabling agreement with ExxonMobil in Guyana for the Operations and Maintenance of the Liza Destiny, Liza Unity, Prosperity, and ONE GUYANA FPSOs.
This framework agreement establishes the new terms related to the operations of the Guyana FPSO fleet for a period of 10 years up to 2033, SBM Offshore said.
The lease terms and durations remain the same for all units, with 10 years lease for FPSO Liza Destiny and up to 2 years lease for FPSOs Liza Unity, Prosperity and ONE GUYANA after which the FPSOs’ ownership will transfer to the client.
"This contract supports SBM Offshore’s long-term business vision in Guyana, enabling the company to perform local and sustainable investments in people and infrastructure as well as to deploy its digital and operational technologies to the Guyana fleet," SBM Offshore said.
The estimated impact on the [SBM Offshore] revenue backlog is around US$3 billion based on various operating and maintenance assumptions, the company said.
"SBM Offshore will operate the units through an Integrated Operation Model, which encompasses an organization model including seconding ExxonMobil Guyana employees in some key onshore and offshore positions. This model will combine SBM Offshore and ExxonMobil Guyana’s experience and resources to increase team efficiency and foster synergies between the two companies," the company said.
Bruno Chabas, CEO of SBM Offshore, said: "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.”
Worth noting, of the four FPSOs mentioned, the Liza Destiny and Liza Unity are in production offshore Guyana. The Prosperity, to be used to develop the Payara field in Guyana's Stabroek block, and with a production capacity of approximately 220,000 gross bopd, is targeted for start-up early in the fourth quarter of 2023.
The ONE Guyana will be used to develop the Yellowtail field offshore Guyana. It will have a production capacity of approximately 250,000 gross bopd, with first production expected in 2025.