ExxonMobil hires Dutch-headquartered company in “key step” towards oil production in Guyana

Last Updated on Tuesday, 20 December 2016, 18:53 by Denis Chabrol

A Floating Production, Storage and Offloading vessel being operated by SBM Offshore.

ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) on Tuesday announced that it has awarded contracts to SBM Offshore for a floating production, storage and offloading (FPSO) vessel, a key step in moving the Liza field toward first production.

Under the contracts, SBM Offshore will perform front end engineering and design for the FPSO, and, subject to a final investment decision on the project in 2017, will construct, install and operate the vessel.

“Liza development activities are steadily progressing, and we’re excited to reach this important milestone,” said Neil Duffin, president of ExxonMobil Development Company. “We look forward to working with the government of Guyana to develop its valuable resources, which have the potential to provide long-term, sustainable benefits to the country,” he was quoted as saying in a statement issued by ExxoMobil

ExxonMobil submitted an application for a production license and its initial development plan for the Liza field in early December. The development plan, submitted to the Guyana Ministry of Natural Resources, includes development drilling, operation of the FPSO, and subsea, umbilical, riser and flowline systems.

The Liza field has a potential recoverable resource estimate in excess of 1 billion oil-equivalent barrels and is located in the Stabroek block approximately 120 miles (193 kilometers) offshore Guyana.

The Stabroek block currently comprises 6.6 million acres (26,800 square kilometers). Esso Exploration and Production Guyana Limited is the operator and holds a 45 percent interest in the Stabroek block. Hess Guyana Exploration Ltd. holds a 30 percent interest, and CNOOC Nexen Petroleum Guyana Limited holds a 25 percent interest.

SBM Offshore says the Liza field has a potential resource estimate in excess of 1 billion oil-equivalent barrels and is located in the Stabroek block.  Esso Exploration and Production Guyana Limited is the operator and holds a 45 percent interest in the Stabroek block.

Hess Guyana Exploration Ltd. holds a 30 percent interest, and CNOOC Nexen Petroleum Guyana Limited holds a 25 percent interest.

SBM Offshore CEO Bruno Chabas commented: “We are proud that ExxonMobil has awarded SBM Offshore contracts for the Liza FPSO, starting with the front-end engineering, which forms an important part of a significant offshore development project. Our dedicated team is lookingb forward to cooperate closely with the ExxonMobil team to make this project a success. This award underlines the fact that experience matters across the entire FPSO life cycle.”