SBM Offshore has announced that it has completed the project financing of FPSO ONE GUYANA for a total of US$1.75 billion., 

According to a press release from the company, the project financing was secured by a consortium of 15 international banks. SBM expects to draw the loan in full, phased over the construction period of the FPSO. The financing will become non-recourse once the FPSO is completed and the pre-completion guarantee has been released. The project loan is in line with the duration of the charter hence a two-year tenor post-completion and carries a variable interest rate based on SOFR plus 2.2% margin.

The FPSO ONE GUYANA builds on the experience to date of FPSOs Liza DestinyLiza Unity and Prosperity.

SBM indicated that the design for FPSO ONE is based on SBM Offshore’s industry leading 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 approximately 250,000 barrels of oil per day, will have associated gas treatment capacity of 450 million cubic feet per day and water injection capacity of 300,000 barrels per day. The FPSO will be spread moored in water depth of about 1,800 meters and will be able to store around 2 million barrels of crude oil.

The project is part of the Yellowtail development which is the fourth development within the Stabroek block, circa 200 kilometers offshore Guyana. Esso Exploration and Production Guyana Limited, an affiliate of Exxon Mobil Corporation, is the operator and holds a 45 percent interest in the Stabroek block, Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds a 25 percent interest.

Hess says production in Guyana could reach 1.2m barrels per day by 2027

Jan 06, 2023

Speaking at the Goldman Sachs, Global Energy and Clean Technology Conference, CEO of Hess Corporation John Hess stated that the official figure for crude oil production from Guyana is estimated to be 1.2 million barrels per day, an upward estimate from the previously reported 850,000 barrels per day. This steady production will be supported by six floating production vessels (FPSOs).

Hess, with partners Exxon and CNOOC, have had 30 major finds offshore Guyana, 9 of which have been in 2022. Presently, Guyana has two FPSOs in operation producing about 360,000 barrels per day.

Mr. Hess noted that based on the recent appraisal of the Fangtooth well, the company may require a dedicated production unit for itself which would be Guyana’s 7th in total.

Emphatically stating that Hess projects in the region will lead to the betterment of all Guyanese, he referred to the recently signed carbon credits deal (click here to read more). and the gas to power project currently underway, which Mr. Hess anticipates will provide stable and low cost electricity for the country(click here to read more).

With such strong indicators of sustainability there remains an undeniable link between the energy sector and the development of Guyana’s infrastructure and services sector.

The International Energy Conference and Expo will take place from February 14 – 17 2023 at the Guyana Marriott Hotel. The theme for the conference in 2023 is Harnessing Energy For Development. Mr. John Hess, CEO of Hess Corporation will be speaking at the conference and delivering a feature address.

 

 

 

SBM signs new MOU with Exxon

Nov 09, 2022

SBM continues its relationship with ExxonMobil through the signing of a new MOU.

SBM Offshore has announced the signing of a Memorandum of Understanding (MOU) with ExxonMobil Guyana for construction of a multi-purpose floater hull for use on a future floating production storage and offloading (FPSO) project.

ExxonMobil and SBM Offshore have a long history of working together, with multiple FPSO projects underway.

Exxon has previously indicated that at least six FPSOs will be in service by 2027. They have also signaled that the resource base in Guyana has the potential to support up to 10 FPSOs.

 

Subsea 7 and Van Oord consortium awarded contract offshore Guyana

Aug 02, 2022

Subsea 7 and Van Oord have announced the award of a substantial contract by ExxonMobil affiliate Esso Exploration and Production Guyana Limited (EEPGL) for the Gas to Energy project offshore Guyana, in water depths of up to 1,450 metres. Although a contract value has not been announced, Subsea 7 has indicated that the contract is between USD150m and USD300m

The scope covers the project management, engineering, and installation of approximately 190 kilometres of pipeline, with an associated shallow water portion and onshore approach making landfall to the west of the Demerara River, along the coast of Guyana.

Craig Broussard, Vice President for Subsea 7 US, said: “We are honoured to have been selected for Guyana Gas to Energy. This is an important project to support the Guyanese people and we look forward to continuing our relationship with EEPGL in one of the most prolific and exciting development basins in the world.”

Hans van Gaalen, Commercial Director for Van Oord, adds: “Van Oord is honoured to have been selected for the Guyana Gas to Energy project in cooperation with Subsea 7. Developing the coastal infrastructure for the project will allow our Subsea 7 and Van Oord consortium to positively contribute to the development of Guyana’s electricity supply which in turn will reduce Guyana’s dependence on imported fuels.”

Leave a Comment

Your email address will not be published. Required fields are marked *

Comment *