Exxon confirms Liza FPSO award to SBM Offshore
Following last week’s FID, ExxonMobil has formally confirmed the award of contracts for the next phase of the Liza project in Guyana, including the one for Dutch FPSO provider, SBM Offshore.
Back in December, Exxon awarded SBM Offshore contracts to perform Front End Engineering and Design for the Liza FPSO, and, subject to a final investment decision, to construct, install and operate the FPSO.
Following completion of front-end engineering studies and final investment decision made last Friday to proceed with the first phase of development for the Liza field, SBM Offshore said on Thursday it will construct, install, lease and operate a floating production, storage and offloading vessel for the Liza field.
The Liza field is located in the Stabroek block, which covers almost 27,000 square kilometers, circa 200 kilometers offshore Guyana. Esso Exploration and Production Guyana Limited is the operator and holds a 45 percent interest in the Stabroek block. Hess Guyana Exploration Ltd. holds a 30 percent interest, and CNOOC Nexen Petroleum Guyana Limited holds a 25 percent interest.
According to SBM Offshore, the FPSO is designed to produce up to 120,000 barrels of oil per day, will have associated gas treatment capacity of circa 170 million cubic feet per day and water injection capacity of circa 200,000 barrels per day. The converted VLCC FPSO will be spread moored in water depth of 1525 meters and will be able to store 1.6 million barrels of crude oil.
SBM Offshore CEO, Bruno Chabas, commented: “We are proud that ExxonMobil awarded SBM Offshore the contracts for the Liza FPSO. The Liza Field offshore Guyana is one of the industry’s largest oil discoveries of the past decade. We look forward to cooperating closely with our client and partners to make this project a success.”
Production from the field is expected to begin by 2020, less than five years after discovery of the field. Phase 1 is expected to cost just over $4.4 billion, which includes a lease capitalization cost of approximately $1.2 billion for the FPSO unit, and will develop approximately 450 million barrels of oil.