SBM Offshore closes $1.75 billion financing for its largest FPSO to date

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Dutch FPSO leasing specialist SBM Offshore announced on Thursday that it has finalized financing for the $1.75 billion project for FPSO One Guyana. The company previously said it would be the company’s largest FPSO to date. It will be deployed at ExxonMobil’s Yellowtail development site, offshore Guyana.

The Dutch company, which is behind the four FPSO projects in Guyana, said financing for the One Guyana project was provided by a consortium of 15 international banks. SBM Offshore plans to draw down the entire loan, spread over the construction period of the FPSO.

“The financing will become non-recourse once the FPSO is completed and the pre-completion guarantee is released. The project loan is in line with the duration of the charter, hence a term of two years after completion, and bears variable interest. rate based on SOFR plus a 2.2% margin,” SBM Offshore said.

According to SBM Offshore, the One Guyana FPSO builds on the experience to date of the Liza Destiny (130,000 bpd) and Liza Unity (220,000 bpd) FPSOs, both of which are in production in the Liza field of the Guyana block of Stabroek, and Prosperity (220,000 bpd), which is being built in Singaporewhich will be deployed on the Payara field, also in the giant block of Stabroek.

ExxonMobil said in May that the construction of the Payara FPSO was about five months ahead of schedule, with a likely start before the end of 2023 and not in 2024 as previously planned.

250,000 barrels per day

Returning to One Guyana FPSO, the unit is based on SBM Offshore’s Fast4Ward program which incorporates the company’s new construction, a versatile hull combined with several standardized topside modules.

SBM Offshore orders these hulls from China without a secure contract, so when they get a contract, the FPSO delivery time is shorter.

The FPSO will be designed to produce approximately 250,000 barrels of oil per dayand will have a partner gas processing capacity of 450 million cubic feet per day and one water injection capacity of 300,000 barrels per day.

The FPSO will be spread out moored in a water depth of about 1,800 meters and can store around 2 million barrels of crude oil.

The project is part of the Yellowtail development, which is the fourth development of the Stabroek block, located approximately 200 kilometers offshore Guyana. It is planned to start production in 2025.

ExxonMobil is the operator of the block and has a 45% stake, Hess Corp. holds a 30% stake and CNOOC holds a 25% stake.

In April, the US oil major said it had discovered oil in three new wells drilled offshore, bringing the recoverable potential of oil and gas from its discoveries to nearly 11 billion barrels.

ExxonMobil partner Hess said earlier this year that at least six FPSOs with a production capacity of more than one million gross barrels of oil per day could come online on the Stabroek block in 2027, with the possibility of up to 10 FPSOs developing recoverable discovered raw resources. offshore block resources.

According to World Energy Reports, ExxonMobil should soon order a 5th FPSO for the Stabroek block.

“It will be used to develop the Mako and Uaru discoveries. The FPSO will have an oil production capacity of over 250,000 bpd and gas of 400+mmcf/d. SBM and Modec have entered into competition to pre-FEED work. The FPSO contract is expected to be awarded in early 2023,” World Energy Reports said in the June edition of its floating generation systems report.


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