ExxonMobil lets follow-up FPSO contracts for Yellowtail

April 5, 2022
ExxonMobil has let FPSO contracts to SBM Offshore for the newly-sanctioned Yellowtail development project in Stabroek block, offshore Guyana.

ExxonMobil Corp. subsidiary Esso Exploration & Production Guyana Ltd. (EEPG) has let FPSO contracts to SBM Offshore NV for the Yellowtail development project in Stabroek block, offshore Guyana, following front-end engineering and design studies (OGJ Online, Nov. 17, 2021).

The $10-billion Yellowtail project, which will include six drill centers and up to 26 production and 25 injection wells, was sanctioned by ExxonMobil and Hess Apr. 4 (OGJ Online Apr. 4, 2022).

Under these FPSO contracts, SBM Offshore will construct, install, lease, and operate the ONE GUYANA FPSO for up to 2 years, after which the FPSO ownership and operation will transfer to EEPGL.

The FPSO will produce 250,000 b/d. It will have associated gas treatment capacity of 450 MMscfd and water injection capacity of 300,000 b/d. The vessel will be spread moored in water depth of about 1,800 m and will be able to store around 2 million bbl crude oil.

The turnkey phase of the project is executed by a special purpose company (SPC) established by SBM Offshore and McDermott. SBM Offshore holds 70% and McDermott holds 30% equity ownership in this SPC. The FPSO will be owned by SBM Offshore.

EEPG is operator and holds 45% interest in Stabroek block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Ltd. holds 25% interest.