SBM Offshore Secures FEED Contracts for Longtail Development in Guyana

The recent selection of SBM Offshore for ExxonMobil’s Longtail development in Guyana highlights how the company’s proprietary Fast4Ward^® program creates a competitive edge in deepwater projects. By utilizing standardized building blocks and a proven multi-purpose hull design, SBM Offshore offers a faster, more predictable delivery timeline compared to bespoke engineering competitors, ensuring large-scale production units reach operational status with higher efficiency and lower risk.

Collaborative FEED Phase and Project Framework
SBM Offshore has entered into contracts with ExxonMobil Guyana Limited to perform Front End Engineering and Design (FEED) for a new Floating Production, Storage, and Offloading (FPSO) vessel. This initial phase triggers the release of funds to commence engineering activities and secures the company’s ninth new-build Multi-Purpose Floater hull. The project progression remains subject to final investment decisions and government approvals, which will eventually transition the contract into the construction and installation phases.

Financial Structure and Asset Transfer
A distinguishing feature of this agreement is the planned transfer of ownership. Unlike traditional long-term lease models, the FPSO ownership will be transferred to the client upon completion of construction and prior to the start of operations. To facilitate this, construction costs will be partially financed through senior loans, which are scheduled for repayment at the point of transfer. Despite the change in ownership, SBM Offshore is slated to manage the unit's operations and maintenance, applying its integrated model to leverage the existing operational excellence established across its Guyanese fleet.

Technical Specifications and Capacity
The Longtail FPSO is designed to handle significant volumes, with a processing capacity of 250,000 barrels of condensate and 1,200 million cubic feet of gas per day. To manage these loads in the deepwater environment of Guyana, the vessel will be spread moored at a depth of approximately 1,750 meters and will feature a storage capacity of roughly 2 million barrels. The use of standardized topside modules further differentiates SBM Offshore’s approach, allowing for high-capacity output while maintaining the reliability of a tested design architecture.

Local Integration and Strategic Continuity
The Longtail project builds upon the established success of previous vessels like the Liza Unity and Jaguar. SBM Offshore maintains its regional advantage by integrating Guyanese engineers into both execution and operational teams. This commitment to local content development, combined with the technical reliability of the Fast4Ward^® program, positions the company as a preferred partner for complex, high-output energy projects in the Guyana-Suriname Basin.

Edited by Evgeny Churilov, Induportals Media - Adapted by AI.

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