ExxonMobil Acquires FPSO Liza Destiny
ExxonMobil Guyana, a subsidiary of the American oil giant ExxonMobil, has made a significant move in the offshore oil industry by acquiring the Floating Production Storage and Offloading (FPSO) unit, Liza Destiny. This acquisition marks a strategic step for ExxonMobil as it continues to expand its operations in the lucrative Stabroek Block, located offshore Guyana. The deal, valued at approximately $535 million, allows ExxonMobil to take ownership of the FPSO ahead of its maximum lease term, which was set to expire in December 2029. While ExxonMobil will now own the unit, Dutch company SBM Offshore will remain responsible for its operation and maintenance until 2033. This partnership reflects the ongoing collaboration between the two companies in the rapidly growing oil sector of Guyana.
Details of the Acquisition
The acquisition of the FPSO Liza Destiny is a notable development for ExxonMobil Guyana. The company purchased the unit from SBM Offshore, a leader in the floating production sector. The total cash consideration for the transaction is around $535 million. SBM Offshore has indicated that the proceeds from this sale will primarily be used to repay $405 million in project financing. This repayment will significantly reduce SBM Offshore’s net debt position, allowing the company to strengthen its financial standing.
The FPSO Liza Destiny has been operational in the Stabroek Block since December 2019. It was converted from a Very Large Crude Carrier (VLCC) and is equipped to handle substantial production volumes. The unit has a production capacity of up to 120,000 barrels of oil per day (bopd) and can treat 170 million cubic feet of gas per day (cfpd). Additionally, it has a water injection capacity of around 200,000 barrels per day and an overall storage capacity of 1.6 million barrels. This robust infrastructure is crucial for ExxonMobil’s ongoing efforts to maximize oil extraction in the region.
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ExxonMobil’s Growing Presence in Guyana
ExxonMobil’s acquisition of the Liza Destiny FPSO is part of a broader strategy to enhance its presence in Guyana’s oil-rich waters. The company has already secured two of the four FPSO units constructed by SBM Offshore for its operations in the region. Earlier in 2023, ExxonMobil acquired the FPSO Unity, and it is set to take ownership of the FPSO Prosperity in early November. These acquisitions underscore ExxonMobil’s commitment to expanding its operational capabilities in Guyana, where significant oil reserves have been discovered.
Guyana has emerged as a hotspot for oil exploration and production, attracting major players in the industry. The Stabroek Block, in particular, has been a focal point for ExxonMobil, which has made substantial investments in the area. The company’s strategic acquisitions of FPSOs not only enhance its production capacity but also position it favorably in a competitive market. As ExxonMobil continues to develop its assets in Guyana, the collaboration with SBM Offshore remains vital for maintaining operational efficiency and meeting production targets.
