ExxonMobil has acquired its third floating production storage and offloading (FPSO) vessel from SBM Offshore, a significant step forward for its offshore oil production in Guyana. This acquisition highlights ExxonMobil’s commitment to ramping up its operations in the Stabroek Block, where it has already established itself as a key player in the country’s burgeoning oil and gas sector.
The FPSO, named Prosperity, follows in the footsteps of Liza Destiny and Liza Unity, which have been instrumental in transforming Guyana into a major player in the global energy market. Prosperity is designed to handle a production capacity of 220,000 barrels of oil per day and store over 2 million barrels, underscoring the scale of ExxonMobil’s ambitions in the region.
This milestone reflects the growing importance of Guyana’s oil reserves, which have spurred unprecedented economic growth and global interest. As ExxonMobil continues expanding its fleet and operations, the company is poised to solidify Guyana’s position as a top-tier energy producer. However, this rapid development also raises important questions about sustainable resource management and equitable distribution of oil wealth.
Key Facts:
1.ExxonMobil’s Ownership Transition of Liza Destiny:
•ExxonMobil has assumed ownership of the FPSO Liza Destiny from SBM Offshore.
•SBM Offshore will continue to operate and maintain Liza Destiny for ExxonMobil until 2033 under the Operations and Maintenance Enabling Agreement.
2.FPSOs for Guyana’s Stabroek Block:
•ExxonMobil has contracted five FPSOs from SBM Offshore for operations in the Stabroek block:
•Liza Destiny
•One Guyana
•Prosperity
•Unity
•Jaguar (contracted in 2024)
3. Ownership Details and Timeline:
•Under the 2023 agreement, ExxonMobil can acquire FPSOs after lease expiration or earlier if desired.
•ExxonMobil has already acquired three FPSOs:
•Unity (2023)
•Prosperity (early 2024)
•Liza Destiny (late 2024)
•Liza Destiny’s lease expires in December 2029, but ExxonMobil has purchased it earlier for $535 million.
4. Financial Details of Liza Destiny’s Purchase:
•The $535 million purchase proceeds will repay $405 million in project financing, reducing SBM Offshore’s net debt.
5. Status of Other FPSOs:
•One Guyana: Onshore commissioning is progressing, with first oil expected in the second half of 2025.
•Jaguar: Will serve the sixth development in the Stabroek block (Whiptail), with ownership transferring to ExxonMobil before installation. SBM Offshore will operate the FPSO for 10 years.
6. Whiptail Development Project:
•Whiptail is the sixth development in the Stabroek block.
•Targeted to start production in 2027.
•Expected to increase Guyana’s oil production to 1.3 million barrels per day.
•Total project investment is $12.7 billion.
Stay tuned as the Guyana Business Journal continues to cover the impact of these advancements on the local economy and the opportunities they create for Guyanese citizens.
