SBM Offshore Secures Major FPSO Contract with ExxonMobil in Guyana

Contract Details and Initial Funding

SBM Offshore has been selected by ExxonMobil Guyana Limited, a subsidiary of Exxon Mobil Corporation, to carry out the Front-End Engineering and Design (FEED) studies for an FPSO for the Longtail development project in Guyana. The award of the FEED contracts results in the initial release of funds by ExxonMobil Guyana Limited to start FEED activities and allocate a Fast4Ward® hull for the Longtail project. SBM Offshore will later proceed with the construction and installation of the FPSO, subject to government approval of the development plan, ExxonMobil's final investment decision, and project approval to release the second phase of the work.

Ownership and Financing

The ownership of the FPSO is expected to be transferred to the client at the end of the construction period and before the start of operations in Guyana. The construction costs are expected to be partially financed by senior loans that will be repaid at the time of the FPSO's transfer to the client. SBM Offshore is expected to operate the FPSO according to its integrated operations and maintenance model, combining the expertise and experience of SBM Offshore and ExxonMobil.

Design and Local Engagement

The FPSO will be designed and constructed using SBM Offshore's Fast4Ward program, based on the company's ninth new Multi-Purpose Floater hull, combined with several standardized topsides modules. The vessel is designed to process 1.2 billion cubic feet of gas per day and produce 250,000 barrels of condensate per day. The FPSO will be moored by chains at a water depth of about 1,750 meters and will be able to store approximately 2 million barrels of condensate. SBM Offshore will continue to commit to the development of local content in Guyana by sourcing part of the fabrication work locally and integrating Guyanese engineers into the execution and operation teams.