SBM Offshore has secured a 10-year operations and maintenance agreement with Esso Exploration & Production Guyana (ExxonMobil Guyana) for the operations and maintenance of FPSOs Liza Destiny, Liza Unity, Prosperity and One Guyana.
The company said this framework agreement sets out the new terms related to the operations of Guyana’s FPSO fleet for a period of 10 years until 2033. The terms and duration of the lease remain the same for all units, with a 10-year lease for FPSO Liza Destiny. and a charter of up to two years for FPSOs Liza Unity, Prosperity and One Guyana, after which ownership of the FPSOs will be transferred to the client, SBM Offshore noted.
This contract supports SBM Offshore’s long-term business vision in Guyana, which enables the company to make local and sustainable investments in people and infrastructure, as well as deploy its digital and operational technologies to the Guyana fleet, according to the statement of the company
The estimated impact on the revenue backlog is about $3 billion, based on various operating and maintenance assumptions, the company said.
SBM Offshore will operate the units through an integrated operating model, which includes an organizational model that includes the collaboration of ExxonMobil Guyana employees in some key onshore and offshore positions. This model will combine the expertise and resources of SBM Offshore and ExxonMobil Guyana to increase team efficiency and foster synergies between the two companies, SMB Offshore said.
“We are very pleased with the contract entered into with ExxonMobil Guyana leveraging the operational excellence recognized by both companies. This contract capitalizes on our developments in Guyana to date, positioning the company for long-term operations in the country. This model of ‘integrated operation is the first of its kind in the industry and expands our relationship with ExxonMobil Guyana by further integrating our teams. We believe it is the optimal solution to achieve excellence in the operation of Guyana’s assets by providing value to all stakeholders and setting a new performance benchmark for the industry,” commented Bruno Chabas, CEO of SBM Offshore.
It is worth recalling that Liza Destiny FPSO commenced production in December 2019, with Liza Unity following suit in February 2022. In March this year, FPSO One Guyana went into dry dock at Keppel Shipyard while the construction continues, while the FPSO Prosperity arrived at the offshore Stabroek block. Guyana in April this year.
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