…Prosperity FPSO hull progressing, but project needs gov’t approval

THE Construction of Guyana’s second floating, production, storage and offloading (FPSO) vessel, the Liza Unity, is now progressing at a “ramped up” level following delays caused by the COVID-19 pandemic. This update was provided by SBM Offshore, on Thursday, in its Half Year 2020 Earnings.

“After the temporary closure of the yards in Singapore due to COVID-19, the yards have re-opened and are currently ramping up again. With the vessel in dry-dock, work is progressing on the integration of the mooring system and the preparation for the lifting and integration of the first topside modules. The project continues to target first oil in 2022,” the Company stated.

In April, SBM Offshore announced that a number of its crew members around the world had tested positive for the virus. It said that while crew rotations have been extended for those offshore, crew changes had become more difficult due to travel restrictions in countries where the Company has operations or crew members are located.

As a result, it organised a dedicated task force to monitor the situation at all Company locations across the globe on a daily basis and continues to follow advice from the relevant
authorities and medical experts.

SBM Offshore was awarded contracts to construct, install, lease and operate the Liza Unity. The FPSO will be designed to produce 220,000 barrels of oil per day with a storage capacity of 2 million barrels in comparison to the Liza Destiny FPSO with 120,000 barrels of oil per day with 1.6 million barrels storage capacity.

Under the contracts, SBM Offshore will lease and operate the Liza Unity FPSO for up to two years. The awarding of the contracts followed the completion of a number of front-end engineering studies; receipt of government approvals and the Final Investment Decision (FID) on the Liza Phase Two project by ExxonMobil and block co-venturers.

Meanwhile, the Liza Unity FPSO design is based on SBM Offshore’s industry leading Fast4WardTM programme which will incorporate the Company’s newly-built multi-purpose hull combined with several standardised topside modules.

It also constructed and designed Guyana’s first FPSO currently offshore Guyana, the Liza Destiny. SBM Offshore noted that, despite the pandemic, it remains on track for construction of Guyana’s third FPSO, Prosperity, but other aspects of the project will require government approval.

The FPSO, like the Liza Unity, will be equipped with the Fast4Ward® multipurpose floater (MPF) hull. “The construction of the Prosperity MPF hull is progressing in accordance with schedule. The Prosperity project remains subject to government approvals, project sanction and an authorization to proceed with the next phase. There are potential delays to the schedule,” the Company said.