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Payara will be the Stabroek block’s third producing section (Image: Hess)

On the same day that ExxonMobil divulged The Dutch company did not reveal the value
news of the FID, two of its contractors said they of the deal. It did say, though, that it expected
had agreed to help support work at the field. to require the service of local sub-contractors.
In its own statement, London-based Tech- “[The] company is looking at executing scope
nipFMC said it had won a contract from an affil- for fabrication and coating of a portion of the
iate of the US super-major to manufacture and light structural steel for the FPSO in Guyana,
deliver the subsea production system that will be which would be a first for SBM Offshore in
installed at Payara. The system will include “41 country,” it said in its own statement. “Addition-
enhanced vertical deepwater trees and associ- ally, SBM Offshore is preparing to recruit and
ated tooling, six flexible risers and 10 manifolds, employ Guyanese engineers into the Payara pro-
along with associated controls and tie-in equip- ject team. Both activities are focused on devel-
ment,” TechnipFMC noted. It indicated that the opment of Guyanese capacity.”
deal was worth between $500mn and $1bn. ExxonMobil and its partners have made
Meanwhile, SBM Offshore of the Nether- more than 15 oil discoveries to date at Stabroek,
lands reported it had won a contract for the which lies in the deepwater section of Guyana’s
construction and installation of a new floating offshore zone. Equity in the project is split 45%
production, storage and off-loading (FPSO) unit to ExxonMobil, the operator; 30% to Hess, a
that will be used at Payara. The contract also pro- US-based independent company, and 25% to
vides for SBM Offshore to lease and operate the state-controlled China National Offshore Oil
vessel, which will be known as the Prosperity, for Corp. (CNOOC).
a period of two years, after which ExxonMobil The group hopes that Stabroek will eventu-
will assume control of it. ally yield 750,000 bpd of oil. ™

Guyana’s VP says country should

proceed with oil development

BHARRAT Jagdeo, the vice-president of Guy- economy. So we want that because [it] means we
ana, has said he does not want the country to can’t raise the money by ourselves, and secondly,
miss the opportunity to develop its offshore oil we want investments to go ahead because there
resources is a stream of revenue that will come to Guyana
Speaking to reporters in Georgetown on in the future for its development.”
October 2, Jagdeo said that Liza and other deep- Jagdeo also cautioned, though, that the coun-
water oilfields represented the country’s best try could not wait indefinitely. Although market
chance to expand revenues and GDP. “I will conditions are not overly favourable right now,
be frank about it: We want this investment to they are likely to worsen in the long term in light
go forward,” he said. “Guyana on its own can- of plans to phase out fossil fuel consumption, he
not raise $9bn. That’s twice the size of our total said.

Week 40 08•October•2020 www. NEWSBASE .com P17