Despite challenges due to the COVID-19 pandemic, SBM Offshore says that all major projects including the two Floating Production, Storage and Offloading (FPSO) oil platforms destined for Guyana’s waters are progressing on schedule.
SBM, a global group based in the Netherlands, has been contracted by ExxonMobil to construct two FPSOs – the Liza Unity and Prosperity for the Liza Phase 2 and Payara development projects offshore Guyana in the Stabroek Block, respectively. The Liza Destiny FPSO currently operating in the Liza Phase 1 Development project, offshore Guyana in the Stabroek block, was also constructed by SBM.
During the Company’s quarterly trading update yesterday Chief Executive Officer of SBM, Bruno Chabas noted that their results over the first quarter of 2021 are in line with their expectations and they hope to maintain that for the rest of the year. He added that despite the continuing challenging environment due to the pandemic, their operating performance was strong and all major projects under construction are progressing as expected.
“Our core business is going through a significant growth phase with four major FPSO projects under construction. World-class deep water projects continue to rank among the most attractive investments available to our clients. Our Fast4Ward® and emissionZERO TM FPSO programs provide industry-leading cost and carbon efficient solutions to help clients maximize value from these investments,” he said.
Regarding Liza Unity, SBM said that the topside lifting campaign was completed during the first quarter of 2021 and work is progressing further on integration and commissioning stages. It assured that the project continues to target first oil in 2022 in line with Exxon’s schedule.
As it relates to Prosperity, SBM said that the topside fabrication started in the shipyards in Singapore noting that the project is progressing according to schedule with a planned completion in 2024. It was disclosed that to develop local capabilities a number of companies from Guyana were awarded contracts and started the fabrication of FPSO components here. In addition, Guyanese engineers have been hired and integrated into the project execution team.
Gas compression
Meanwhile, SBM said that repairs are being done on elements of the flash gas compression system for Liza Destiny. Since January this year, ExxonMobil has experienced major problems with the gas compression equipment on its Liza Destiny FPSO platform in the Atlantic and this has led to environmentally damaging gas flaring which is continuing.
The discharge silencer of the gas compressor system began experiencing technical issues for the third time during the final testing phase of the reinstalled flash gas compressor and other components of the system in April. SBM said that repairs should be completed and delivered back in Guyana during the month of July 2021. Plans to install a redesigned third stage flash gas compression system at the end of this year is also progressing. “SBM Offshore is continuing to work closely with the client and with the equipment manufacturer in order to expedite resolution of the situation,” the company said.
Chabas added that while projects continue to face many challenges, the ultimate delivery of these projects is not considered at risk, based on currently known circumstances. He subsequently stated that the Company has a significant role to play in satisfying the world’s future energy demand using their experience and technology to offer low emission production solutions and new solutions for the energy transition. “Our New Energies business is making good progress in maturing our innovative technology as well as strategically positioning the Company to benefit from expected growth in market demand,” Chabas said.
