US$1B Payara FPSO arrives at shipyard for final installations

Even as the Liza Unity, Floating Production Storage and Offloading (FPSO) Vessel nears completion in a Singapore shipyard to set sail for Guyana in the latter half of this year, the converted Very Large Crude Carrier (VLCC) now called Prosperity has arrived in the said facility for its topsides installation.The vessel is currently moored alongside the almost completed Liza Unity in the Keppel Shipyard in Singapore.
The announcement was made by SBM Offshore yesterday, the Dutch floater specialist that had won the bid to supply multiple FPSOs for Esso Exploration and Production Guyana Limited—ExxonMobil Guyana—the operator of the Stabroek Block.
The company in making the announcement said “the next phase of construction will commence, with the topside modules being integrated at the yard.”
It was noted, according to the SBM missive, that despite the various challenges posed by the ongoing global pandemic, the unit remains on schedule to be completed in 2024.”
SBM said the dry dock activities on the Prosperity are scheduled to begin in the fourth quarter of this year, “with the installation of major structures that will support the Mooring and Subsea Risers.”
Additionally, the Dutch Based FPSO builders noted that “in keeping the standardization philosophy that guides the Fast4Ward® program, the Prosperity FPSO by large replicates the design used for the Liza Unity FPSO.”
According to SBM Offshore’s announcement, “This approach has showcased the value of Fast4Ward®, ensuring that the final product is delivered faster to our client ExxonMobil.”
Once installed, the vessel is intended to produce roughly 220,000 barrels of oil per day and will be able to store around 2 million barrels of crude oil.
According to SBM, “Once completed, Prosperity will join her sister vessel Liza Unity, currently under construction at the same yard, and Liza Destiny, operational since end of 2019, offshore Guyana.”
SBM Offshore in June last completed the project financing of FPSO Prosperity at a total of US$1.05 billion.
The project financing was secured by a consortium of 11 international banks. The company at the time of the announcement outlined that the financing—to eventually be recovered from Guyana’s oil produced in from the Stabroek Block—was to be drawn down in full, phased over the construction period of the FPSO.
The financing, according to SBM “will become non-recourse once the FPSO is completed and the pre-completion guarantee has been released.”
The project loan was at the time inked with a tenor of two years post completion, in line with the duration of the charter, and carries a variable interest rate plus 1.60%.

The Prosperity FPSO will utilise a design that largely replicates the design of the Liza Unity FPSO. As such, the design is based on SBM Offshore’s industry leading Fast4Ward® program that incorporates the Company’s new build, multi-purpose hull combined with several standardized topsides modules.
The FPSO was be designed to produce 220,000 barrels of oil per day, will have associated gas treatment capacity of 400 million cubic feet per day and water injection capacity of 250,000 barrels per day.
The FPSO, once completed will be moored in water depth of about 1,900 meters and will be able to store around 2 million barrels of crude oil.
The project is part of the US$9B Payara development, which is the third development within the Stabroek Block, some 200 kilometers offshore Guyana.
Esso Exploration and Production Guyana Limited, an affiliate of Exxon Mobil Corporation, is the operator and holds a 45 percent interest in the Stabroek Block, Hess Guyana Exploration Limited holds a 30 percent interest and CNOOC Petroleum Guyana Limited holds a 25 percent interest.

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