Guyana: 10-year oil agreement

The Guyana-based SBM Offshore says it has signed a 10-year framework agreement with Exxon Mobil’s local subsidiary, Esso Exploration & Production Guyana Limited (EEPGL) for the operations and maintenance of four oil platforms (FPSO) there.

An FPSO is a floating production system that receives fluids such as crude oil and water from a subsea reservoir through risers, which then separate fluids into crude oil, natural gas, water and impurities within the topsides production facilities onboard.

SBM Offshore said this framework agreement establishes the new terms related to the operations of the Guyana FPSO fleet of the Liza Destiny, Liza Unity, Prosperity and One Guyana, for a period of 10 years up to 2033.

“The lease terms and durations remain the same for all units, with 10 years lease for FPSO Liza Destiny and up to 2 years lease for FPSOs Liza Unity, Prosperity and ONE GUYANA after which the FPSOs’ ownership will transfer to the client.

“This contract supports SBM Offshore’s long-term business vision in Guyana enabling the company to perform local and sustainable investments in people and infrastructure as well as to deploy its digital and operational technologies to the Guyana fleet. The estimated impact on the revenue backlog is around US$3 billion based on various operating and maintenance assumptions.”

SBM Offshore said it will operate the units through an Integrated Operation Model, which encompasses an organization model including seconding ExxonMobil Guyana employees in some key onshore and offshore positions.

It added that this model will combine SBM Offshore and ExxonMobil Guyana’s experience and resources to increase team efficiency and foster synergies between the two companies.

“We are very pleased with the contract concluded with ExxonMobil Guyana leveraging both companies’ recognized operating excellence. This contract capitalizes on our developments in Guyana to date, positioning the company for long-term operations in the country,” said SBM Offshore chief executive officer, Bruno Chabas.

“This Integrated Operation Model is the first of its kind in the industry and extends our relationship with ExxonMobil Guyana by integrating further our teams. We believe it is the optimal solution to achieve excellence in the operation of Guyanese assets bringing value to all stakeholders and setting a new performance benchmark for the industry,” he added.

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