Dutch floating production specialist SBM Offshore has secured a contract from ExxonMobil to carry out front-end engineering and design (FEED) work for an FPSO vessel planned for the Longtail development offshore Guyana.
The FEED award includes an initial release of funds from ExxonMobil to begin engineering activities, as well as the allocation of a Fast4Ward hull for the project, allowing SBM Offshore to accelerate the development timeline.
SBM Offshore could also go on to build and install the FPSO, subject to approval of the field development plan by the Guyanese government, ExxonMobil’s final investment decision, and authorization to move into the next phase of the project.
Under the contract structure, ownership of the FPSO is expected to be transferred to the client once construction is completed and before operations begin in Guyana. Construction costs are expected to be partly financed through senior loans, which would be repaid after the unit is handed over to the customer.
SBM Offshore is also expected to operate the floating production, storage and offloading vessel under its integrated operations and maintenance model, drawing on its experience with the company’s existing FPSOs already deployed in Guyana.
The planned FPSO will be designed to process up to 1.2 billion cubic feet of gas per day and produce 250,000 barrels of condensate per day. It will be moored in water depths of about 1,750 meters and will have storage capacity for around 2 million barrels of condensate.
SBM Offshore CEO Øivind Tangen said the company was proud to receive its sixth FPSO contract from ExxonMobil Guyana, adding that SBM is well positioned to support the Longtail development, a major gas project that will require the highest gas throughput ever installed on an FPSO.
The Longtail project marks another major step in the continued expansion of Guyana’s offshore energy sector and highlights the growing demand for large-scale floating solutions capable of handling both gas processing and condensate production.
