Keppel Offshore & Marine’s subsidiary Keppel Shipyard has secured a floating production storage and offloading vessel (FPSO) conversion contract from SBM Offshore meant for ExxonMobil’s Liza field offshore Guyana.
The contract is for the conversion of a very large crude carrier (VLCC) into an FPSO, which upon completion, will be deployed to the ExxonMobil-operated Liza field, located approximately 193km offshore Guyana in the Stabroek block.
The shipyard’s work scope includes refurbishment and life extension works, such as the upgrading of living quarters, fabrication and installation of spread mooring systems, as well as the installation and integration of topside modules, Keppel said on Thursday.
Chor How Jat, Managing Director (Conversions and Repairs), Keppel O&M and Managing Director, Keppel Shipyard, said, “We are pleased to undertake the conversion of this FPSO, which is our 25th major project from SBM Offshore. It is testament to Keppel’s expertise in FPSO conversions and the strong partnership we have developed with SBM Offshore since Keppel Shipyard’s first delivery in 1981.”
The converted FPSO will have a storage capacity of 1.6 million barrels of crude oil and will be capable of producing up to 120,000 barrels of oil per day. The vessel will have a gas treatment capacity of circa 170 million standard cubic feet per day and a water injection capacity of circa 200,000 barrels of water per day.
The Stabroek block, which contains the Liza field, covers almost 27,000 square kilometers, approximately 193 kilometers offshore Guyana. Exxon’s subsidiary Esso Exploration and Production Guyana Limited is the operator and holds a 45 percent interest in the Stabroek block. Hess Guyana Exploration Ltd. holds a 30 percent interest, and CNOOC Nexen Petroleum Guyana Limited holds a 25 percent interest.
When it comes to SBM Offshore’s participation in the project, the Dutch company was awarded a contract to supply the FPSO unit for the Liza discovery back in December last year. TechnipFMC was put in charge of providing the engineering, manufacture, and delivery of subsea equipment for the project in April and Saipem was awarded a contract to deliver the SURF package for the project in May this year.
Exxon made a final investment decision to proceed with the first phase of development for one of the largest oil discoveries of the past decade in mid-June.
Gross recoverable resources for the Stabroek block are estimated at 2 billion to 2.5 billion oil-equivalent barrels, which includes Liza and other successful exploration wells on Liza Deep, Payara and Snoek.
Production is expected to begin by 2020, less than five years after discovery of the field. Phase 1 is expected to cost just over $4.4 billion, which includes a lease capitalization cost of approximately $1.2 billion for the FPSO unit.
Offshore Energy Today Staff