SBM Offshore is pleased to announce it has been awarded contracts to perform Front End Engineering and Design (FEED) for a Floating Production, Storage, and Offloading vessel (FPSO) for the Yellowtail development project.
The FEED contract award triggers the initial release of funds by ExxonMobil’s subsidiary Esso Exploration and Production Guyana Limited (EEPGL) to begin FEED activities and secure a Fast4Ward® hull.
Construct, install, and lease FPSO
Following FEED and subject to government approvals in Guyana of the development plan, and project sanction including the final investment decision by ExxonMobil, and EEPGL’s release of the second phase of work, SBM Offshore will construct, install, and then lease the FPSO and operate it for a period of up to 2 years.
The first oil is expected in 2025.
Fast4Ward® programme
FPSO will be spread moored in a water depth of about 1,800 metres
SBM Offshore will design and construct the FPSO using its industry-pioneering Fast4Ward® programme allocating the Company’s sixth new build, Multi-Purpose Hull combined with several standardised topsides modules.
The FPSO will be designed to produce 250,000 barrels of oil per day and will have an associated gas treatment capacity of 450 million cubic feet per day and a water injection capacity of 300,000 barrels per day. The FPSO will be spread-moored in a water depth of about 1,800 metres and will be able to store around 2 million barrels of crude oil.
SPC for the turnkey phase
Building on the experience to date on the Liza Destiny, Liza Unity, and Prosperity FPSOs, SBM Offshore continues to commit to local content development in Guyana through sourcing fabrication scope locally and the integration of Guyanese engineers in the execution and operational teams.
To strengthen its execution model given the current challenging market environment, SBM Offshore established a special purpose company (SPC) with McDermott for the execution of the turnkey phase of the project.
EPC solutions
This SPC will benefit from the combined engineering and fabrication capacity as well as the experience of both companies in delivering EPC solutions to the energy industry.
SBM Offshore will hold 70% and McDermott will hold 30% equity ownership in this SPC. The FPSO will be fully owned by SBM Offshore.
Largest producing FPSO
This project again demonstrates the value that our Fast4Ward® programme continues to bring"
Bruno Chabas, SBM Offshore’s Chief Executive Officer, “SBM Offshore is proud to announce ExxonMobil has awarded the contracts for the fourth FPSO to be deployed in Guyana."
"When finished, the FPSO will be the largest producing unit ever built by the Company. This project again demonstrates the value that our industry-pioneering Fast4Ward® programme continues to bring to our clients and other stakeholders. We are also pleased to announce our partnership with McDermott and look forward to working together through the execution phase and delivering this world-class project.”
Integration and execution
Samik Mukherjee, McDermott’s Executive Vice President and Chief Operating Officer, “Our people and resources bring the proven project execution, integrated engineering and modularisation capabilities essential for delivery assurance and success."
"We will align these strengths with those of SBM Offshore to drive a cohesive, efficient execution strategy together.”
