Singapore’s Keppel Shipyard is expecting the arrival of a very large crude carrier (VLCC), which will be converted into a floating production storage and offloading (FPSO) unit for SBM Offshore, this month.
The FPSO unit will be used to develop the ExxonMobil-operated giant Liza field offshore Guyana.
According to SBM Offshore’s third-quarter statement on Wednesday, following the VLCC arrival, Keppel’s vessel-related work scope is planned to start by the end of this year.
As per agreement signed between Keppel Shipyard and SBM Offshore in early October, Keppel’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.
Back in December last year, Exxon awarded SBM Offshore contracts to perform Front End Engineering and Design (FEED) for the Liza FPSO and, subject to a final investment decision, to construct, install and operate the FPSO.
Following completion of FEED studies and final investment decision to proceed with the first phase of development for the Liza field in mid-June, SBM Offshore was confirmed as a provider of the FPSO vessel for the Liza field later that month.
The FPSO will be able to produce up to 120,000 barrels of oil per day, it will have associated gas treatment capacity of circa 170 million cubic feet per day and water injection capacity of circa 200,000 barrels per day. The unit will be spread moored in water depth of 1525 meters and will be able to store 1.6 million barrels of crude oil.
The Liza field is located in the Stabroek block, which covers almost 27,000 square kilometers, circa 200 kilometers offshore Guyana. 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.
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.
Source: Offshore Energy Today