Netherlands-based SBM Offshore, a provider of the design, construction, installation, and operation of offshore floating facilities, has divested another floating production, storage, and offloading (FPSO) unit, which is working off the coast of Guyana, enabling ExxonMobil Guyana, a subsidiary of the U.S.-headquartered ExxonMobil, to take possession of the third FPSO deployed at the Stabroek block.
The U.S. oil major notified the Dutch FPSO operator of its intention to buy another unit working at the Stabroek block, following the p urchase of the FPSO Prosperity, which came a year after the firm paid around $1.26 billion for the FPSO Liza Unity .
SBM Offshore has now confirmed the sale of the FPSO Liza Destiny , ahead of the maximum lease term, which would have expired in December 2029. This enables ExxonMobil Guyana to assume unit ownership while the Dutch player will continue to operate and maintain the FPSO up to 2033.
The sale brings a total cash consideration of around $535 million to SBM Offshore, which will use the net cash proceeds of this divestment primarily for the full repayment of the $405 million project financing to decrease its net debt position.
The FPSO Liza Destiny has been hard at work in Guyanese waters since December 2019, as part of the Liza Phase 1 development . Since 2023, the unit has been operated through the integrated operations and maintenance model, combining SBM Offshore and ExxonMobil’s expertise and experience in delivering operational performance.
ExxonMobil is the operator and holds a 45% interest in the Stabroek block, with Hess Guyana Exploration (30%) and CNOOC Petroleum Guyana (25%) as its partners. Since Hess is determined to merge with Chevron , the latter may become ExxonMobil’s new partner next year.
The duo’s business combination plans passed the Federal Trade Commission (FTC) antitrust review. However, Hess’ Chief Executive Officer (CEO) was prohibited from joining the U.S. oil major’s board on the grounds of his previous communications with global competitors, such as the OPEC cartel.
The completion of the merger remains subject to closing conditions, including the satisfactory resolution of ongoing arbitration proceedings, which ExxonMobil and CNOOC decided to file before the International Chamber of Commerce.
This arbitration revolves around preemptive rights in the Stabroek block joint operating agreement, as the duo is convinced they have a right to a first refusal over any sale of Hess’ 30% interest in the oil-rich offshore block in Guyana.
The list of ExxonMobil’s six projects in this country includes Liza Phase 1 and Phase 2 , Payara , Yellowtail , Uaru, and Whiptail . Steps are also being taken to get the required approvals for Hammerhead as the seventh deepwater oil project in Guyana, which will add between 120,000 and 180,000 barrels per day (bpd) by 2029, raising the country’s overall production capacity bar to nearly 1.5 million bpd.
Meanwhile, SBM Offshore is preparing three FPSOs to begin work next year. While two will go to oil fields offshore Brazil, one will be deployed at one of ExxonMobil’s projects under development offshore Guyana.