OIL companies are constantly investing in new technologies to make the exploration and development of oil-and- gas reserves more efficient, more environmentally friendly, and cheaper. FPSOs are one example that’s particularly relevant for Guyana. These massive and technologically advanced vessels allow for the production of oil in more remote areas and in deeper waters than would have been economically possible in the past and will play a critical role in Guyana’s oil future.

An FPSO, or a Floating Production Storage and Offloading vessel, is a state-of-the-art oil –and- gas production ship used in lieu of a stationary drilling and production platform. It’s equipped to produce, process, and store crude oil. The full well stream, which arrives at the ship directly from deep- water wells via flowlines and risers, is separated into crude, water and gas. The crude is treated and then stored on board. Crude cargoes are then periodically offloaded to shuttle tankers that deliver the oil to refineries.

In addition to increased flexibility to operate in deeper waters, FPSOs also help reduce the environmental impacts of oil production. Modern FPSOs are designed to avoid routine flaring of natural gas and instead reinject that gas into the ground and use it for on-board power generation or export it via a pipeline to the shore. Produced water is treated and tested to comply with strict regulatory specifications before it is discharged overboard.

Exxon and its partners in the Stabroek Block already have one FPSO in operation and are planning to bring two more online in the Stabroek block in the next few years. Analysts at Rystad Energy predict that Guyana’s offshore blocks could require up to 10 FPSOs by 2030, with one new vessel added per year. That would represent more than 1 million barrels per day of oil production and a huge increase in government revenues.

Guyana’s Liza Phase 1 project already includes the Liza Destiny, an FPSO that can produce up to 120,000 barrels of oil per day, with a storage capacity of 1.6 million barrels. Liza Phase 2 will host the Liza Unity, which is already under construction and is expected to be online in 2022 and is designed to produce up to 220,000 barrels of oil per day. And finally, the recently approved Payara project will be serviced by the Prosperity, which is expected to produce another 220,000 barrels per day and is expected to see first oil in 2024.

Guyana’s newest FPSOs, Unity and Prosperity, will be equipped with the most efficient and advanced production and safety technologies currently available. Both are part of SBM Offshore’s “Fast4Ward Project,” which is an international effort by the oilfield services contractor to reduce costs for companies and countries by standardising designs, increasing the lifespan of the hulls and raising storage capacity to up to 2.3 million barrels of oil. The Fast4Ward FPSOs also have a shorter build time, which allows projects to come on line sooner.

The Prosperity will be designed in the style of the Liza Unity, now under construction, which incorporates the Fast4Ward programme’s updated and standardised technologies that aim to reduce emissions and completely eliminate routine flaring.

Although there has been some flaring in the Stabroek Block so far, this is unlikely to continue long term, except for flaring during process upsets. According to Morgan Bazilian, a Professor of Public Policy at the Colorado School of Mines and a former lead energy specialist at the World Bank, flaring during project start-up and mechanical issues is both common and a crucial safety measure for offshore development.

Updated technology could also unlock new opportunities for Guyana and its people. The natural gas produced offshore by FPSOs could facilitate a switch from heavy fuel oil to natural gas for power generation.

If key infrastructure such as pipelines and a new gas-burning power plant can be built, gas produced by FPSOs could provide Guyana with significantly cleaner, cheaper and more reliable energy. A similar switch from high-emission coal to cleaner-burning natural gas in the U.S. has driven major reductions in the types of pollution that cause climate change. Cheaper energy could also create cascading positive impacts that would be felt across the country—increasing the ease of doing business in Guyana and reducing costs for households everywhere.