LAST week, ExxonMobil Guyana announced the arrival of the Prosperity Floating, Production, Storage, and Offloading (FPSO) vessel in the waters offshore Guyana.

The Prosperity FPSO follows the Liza Destiny and Liza Unity FPSOs, which are currently producing more than 380,000 barrels per day. Production from the Prosperity vessel is expected to push daily output from the Stabroek Block to some 600,000 barrels a day next year.

ExxonMobil Guyana Production Manager Mike Ryan heralded the new FPSO as a continuation of the partnership and said, “The arrival of the Prosperity FPSO is a testament to the strong partnership between ExxonMobil Guyana, the Government of Guyana, our co-venturers and the many suppliers that support our operations.

We are excited to contribute to Guyana’s energy future and create lasting opportunities for the nation’s growth and prosperity.”

FPSOs are some of the largest, most sophisticated vessels in existence and form a key element of oil production in offshore areas like those in the Stabroek Block.

Guyana is a prime example of the investments being made in offshore oil and according to analysts, is one of the countries driving the global market for FPSO this decade.

The Prosperity FPSO will be used in production at the US $9 billion Payara field in the Stabroek Block. Prosperity arrives at an opportune time as Guyana is at the centre of an offshore oil surge and FPSO market boom. According to Rystad Energy, offshore spending will account for 68 per cent of spending on newly sanctioned oil and gas projects over the next two years and will eclipse US$100 billion in 2023 and 2024.

FPSOs represent a key component of Guyana’s offshore development strategy as much of the current and future oil fields will be serviced by FPSOs, with up to 10 expected to eventually be in operation.

Prosperity began construction in late 2020 after Final Investment Decision (FID) and regulatory approvals for the Payara project were granted. The two-year period between FID and arrival underscores the necessity of timely but thorough review of projects to maximise Guyana’s earnings from oil and manage overall costs for the projects. The longer projects take to reach FID, the more risks grow that they will delay other critical investments.

Guyana has continued to improve its reputation as a place to do business—and the investments necessary to support developing its resources have flowed as a result. This underscores the importance of contract sanctity and creating the environment to unlock investments in other sectors of the economy.

With a booming economy and many areas ripe for investment, potential partners are carefully watching developments in this area.

Prosperity is the second FPSO from SBM that earned accolades for its sustainable design. The vessel was awarded the SUSTAIN-1 notation by the American Bureau of Shipping (ABS) for its adoption of new or redesigned technologies and better methods to reduce emissions by reducing venting and turning gas that might otherwise be flared or reinjected into electricity to power onboard equipment.

The new vessels are expected to be more energy efficient and have lower air emissions than any other similar vessels operating around the world. This is proof that Guyana can uphold environmental standards while expanding production in the oil and gas sector.

There is a direct link between increased production numbers and increased oil revenues flowing in to support the development and advancement of Guyana’s economy. With production steadily increasing and the price of oil rising, now more than ever, time is of the essence to keep things moving in Guyana’s oil and gas sector—especially as the global transition away from fossil fuel begins.

Guyana has continued to defy the odds and successfully manage the influx of oil wealth and spur growth in other areas of the economy.

The Prosperity is expected to start production later this year and with daily production set to eventually reach 600,000 barrels, so too will Guyana’s annual revenues grow.