ExxonMobil subsidiary Esso Exploration and Production Guyana Ltd. has let a contract to SBM Offshore to perform front end engineering and design (FEED) for a floating production, storage and offloading vessel (FPSO) for the Yellowtail development project in the Stabroek block offshore Guyana.
Following FEED and subject to government approvals in Guyana of the development plan, project sanction including final investment decision by ExxonMobil, and Esso’s release of the second phase of work, SBM Offshore will construct, install, and then lease the FPSO and operate it for a period of up to 2 years. First oil is expected in 2025.
SBM Offshore will design and construct the FPSO to produce 250,000 b/d of oil with associated gas treatment capacity of 450 MMcfd and water injection capacity of 300,000 b/d. The FPSO will be spread moored in water depth of about 1,800 m and will be able to store around 2 million bbl of crude oil.
SBM Offshore established a special purpose company (SPC) with McDermott for the execution of the turnkey phase of the project. SBM Offshore will hold 70% and McDermott will hold 30% equity ownership. The FPSO will be fully owned by SBM Offshore.
Yellowtail-1 was the fifth discovery in the Turbot area that includes Tilapia, Turbot, Longtail, and Pluma discoveries. It is expected to become a major development hub (OGJ Online, Apr. 18, 2019). The well encountered 292 ft of oil-bearing sandstone reservoir and was drilled to 18,445 ft in 6,046 ft of water.
TechnipFMC will supply the subsea production system (OGJ Online, Nov. 15, 2021).