SBM Offshore firms up Prosperity FPSO award with ExxonMobil

Dutch FPSO provider SBM Offshore has confirmed the award of contracts for the next phase of the ExxonMobil-operated Payara development project located in the Stabroek block offshore Guyana.

The contract award to SBM Offshore follows ExxonMobil’s final investment decision for the $9 billion Payara project, which is its third development in the Stabroek block.

The Stabroek block is located circa 200 kilometres offshore Guyana.

It also follows the completion of front-end engineering and design studies, completion of the multi-purpose hull, and receipt of requisite government approvals.

The Payara project will target an estimated resource base of about 600 million oil-equivalent barrels.

It is expected to produce up to 220,000 barrels of oil per day after startup in 2024, using the Prosperity floating production, storage and offloading (FPSO) vessel.

SBM Offshore said on Thursday that, under these contracts, it will construct, install, and then lease and operate the Prosperity FPSO for a period of up to two years.

After this, the FPSO ownership and operation will transfer to Esso Exploration and Production Guyana Limited (EEPGL), an affiliate of Exxon Mobil Corporation. EEPGL is the operator of the block.

EEPGL is the operator and holds a 45 per cent interest in the Stabroek block, Hess Guyana Exploration Ltd. holds a 30 per cent interest and CNOOC Petroleum Guyana Limited holds a 25 per cent interest.

The Prosperity FPSO will use a design that largely replicates the design of the Liza Unity FPSO.

As such, the design is based on SBM Offshore’s Fast4Ward program that incorporates the company’s new build, multi-purpose hull combined with several standardized topsides modules.

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 a 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.

For example, the company 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 the country.

Following the FID for the Payara project, ExxonMobil has also awarded a contract to TechnipFMC to manufacture and deliver the subsea production system for the Payara development.

The deal includes 41 enhanced vertical deep water trees and associated tooling, six flexible risers and ten manifolds along with associated controls and also tie-in equipment.