SBM awarded turnkey, lease, and operate contracts for oilfield in Guyana

SBM Offshore will take charge of the FPSO construction, installation, lease and operation. Phase 1 rental of the FPSO will be roughly US$1.2 billion.
SBM Offshore is in negotiations with two Chinese shipbuilders in the final round of bidding for the FPSO order: Shanghai Waigaoqiao Shipbuilding and China Merchants Heavy Industry. The yard which wins the contract will probably also win more follow-up orders. Brokers say that Waigaoqiao has won the contract and is likely to sign a contract with SBM in coming weeks. The FPSO is designed to produce up to 120,000 barrels of oil per day, will have associated gas treatment capacity of about 170 million cubic feet per day and water injection capacity of around 200,000 barrels per day. The converted VLCC FPSO will be spread moored in water depth of 1,525m and will be able to store 1.6 million barrels of crude oil.