SBM Offshore announced the award of front-end engineering and design (FEED) contracts by ExxonMobil Guyana Limited for the Longtail project, located in deep water.
This agreement marks the start of technical activities for a floating production, storage and offloading unit (FPSO), a key piece of infrastructure for gas processing and condensate production in the South American country.
FEED contract drives development of the Longtail FPSO in Guyana
As reported, the award triggers the initial release of funds to carry out the FEED studies and enables a hull to be allocated under the Fast4Ward program, a standardized solution aimed at optimizing timelines and costs in offshore projects.
In addition, construction and installation of the FPSO will be subject to regulatory approvals, as well as ExxonMobil’s final investment decision. This stage will determine progress toward full execution of the development.
A high-capacity FPSO
The design calls for a unit capable of processing up to 1.2 billion cubic feet of gas per day and producing approximately 250,000 barrels per day of condensate.
Likewise, the vessel will be moored at a depth of around 1,750 m and will have a storage capacity of about 2 million barrels, placing it among the most technically demanding developments in the region.
Operating model and project financing
Under the terms of the contract, ownership of the FPSO will be transferred to ExxonMobil once construction is completed and before operations begin. Part of the costs will be covered through structured financing, which will be repaid at the time of transfer.
SBM Offshore will also operate the unit under its integrated operations and maintenance model, combining its expertise with ExxonMobil’s operational know-how in Guyana’s offshore environment.
Continued offshore development in Guyana
The Longtail project joins a series of recent developments in the country, where multiple FPSOs such as Liza Destiny, Liza Unity, and Prosperity are already operating. This continuity reflects sustained growth in deepwater production.
In this context, the company also reaffirmed its commitment to local content, integrating Guyanese talent and promoting in-country fabrication services.
Finally, SBM Offshore’s executive management noted that this contract strengthens the company’s position in large-scale gas processing systems and consolidates its participation in one of the world’s most dynamic offshore markets.
Source: SBM Offshore
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