Dutch FPSO operator SBM Offshore has been awarded a contract for the front-end engineering and design (FEED) of an FPSO vessel intended for ExxonMobil's sixth deepwater oil development project on the Stabroek block offshore Guyana. This marks the fifth FPSO to be built by SBM Offshore for operations in Guyana.

The contract's approval has triggered the commencement of the FEED activities, paving the way for the Whiptail development project. Upon final investment decision by ExxonMobil and approval of the development plan, SBM Offshore will design and construct the FPSO using its Fast4Ward program, incorporating a seventh new build, multi-purpose floater hull, and standardized topsides modules.

The FPSO, set to operate in waters approximately 1,630 meters deep, will have a storage capacity of approximately 2 million barrels of crude oil, a production capability of 250,000 barrels of oil per day, and a gas treatment capacity of 540 million cubic feet per day, in addition to a water injection capacity of 300,000 barrels per day.

SBM Offshore will oversee the FPSO's operations through its integrated operations and maintenance model, emphasizing the company's commitment to local content development in Guyana by engaging local engineers in the project's execution and operational teams.

The Whiptail development project aims to exploit the Whiptail, Pinktail, and Tilapia fields, along with any additional resources deemed feasible and economically viable. The project is located in the southeastern region of the Stabroek Block, approximately 183 kilometers from Georgetown, within the Guyana Continental Shelf.

ExxonMobil foresees the project adding up to 275,000 barrels of oil per day to the existing daily production volumes in Guyana, contributing additional revenues to the government of Guyana while creating employment opportunities within the local petroleum industry.

The development plan aligns with ExxonMobil's commitment to the World Bank's initiative to eliminate routine flaring of associated gas by 2030, emphasizing the responsible utilization of gas resources for fuel or reinjection into reservoirs to enhance oil recovery. The Stabroek block, operated by ExxonMobil, spans 6.6 million acres and is expected to host up to ten FPSOs, contributing to the estimated gross discovered recoverable resources of more than 11 billion barrels of oil equivalent.