SBM Offshore wins FEED work and allocates ninth Fast4Ward hull for Guyana’s Longtail FPSO
ExxonMobil Guyana Limited has awarded SBM Offshore FEED contracts for an FPSO serving the Longtail development in Guyana. The award releases initial funding for FEED and allocation of SBM Offshore’s ninth new-build Multi-Purpose Floater hull. Subject to government, investment and project approvals, SBM Offshore would construct and install the unit, transfer it to the client before operations and subsequently operate it under an integrated operations and maintenance model.
Confirmed development: SBM Offshore has received FEED contracts from ExxonMobil Guyana Limited for the Longtail FPSO, triggering initial funding for engineering and allocation of the contractor’s ninth new-build Fast4Ward hull. The proposed unit is designed for unusually large gas-handling capacity of 1.2 billion cubic feet per day, alongside condensate production capacity of 250,000 barrels per day and storage of approximately 2 million barrels.
Several later stages remain conditional rather than firm. SBM Offshore says construction and installation depend on government approval of the development plan, ExxonMobil’s final investment decision and authorization of the second work phase. The contemplated commercial structure would transfer the FPSO to the client after construction and before operations, with senior construction loans repaid at transfer. SBM Offshore is also expected to operate the unit through an integrated operations and maintenance model.
Analytical interpretation: the FEED award advances Longtail into a defined engineering and hull-allocation phase and provides a prospective follow-on construction, installation and operations opportunity for SBM Offshore. Its scale would extend the standardized Fast4Ward production-unit series in Guyana and create potential demand across fabrication, standardized topsides, mooring, financing, installation and long-term operating support. These subsequent opportunities remain dependent on the stated approvals and FID.