The Prosperity FPSO at Payara, Guyana’s third offshore oil development on the Stabroek Block. Photo courtesy ExxonMobil
ExxonMobil Guyana has completed the purchase of the Floating Production, Storage, and Offloading (FPSO) Prosperity from SBM Offshore.
The strategic acquisition, finalized ahead of schedule, marks a pivotal moment in Guyana’s rapidly expanding offshore industry.
The transaction, valued at approximately $1.23 billion, not only transfers ownership of the FPSO Prosperity to ExxonMobil Guyana but also ensures its continued operation through an extended partnership. SBM Offshore, a Dutch company specializing in offshore floating facilities, will continue to operate and maintain the vessel until 2033.
“This acquisition allows ExxonMobil Guyana to assume ownership of the unit while benefiting from SBM Offshore’s continued operational support,” said a spokesperson for ExxonMobil Guyana. “The integrated operations and maintenance model combines our expertise and experience, delivering outstanding operational performance.”
The FPSO Prosperity, which has been operational since November 2023, is one of three such units currently operating in the Stabroek Block off Guyana’s coast. These FPSOs have catapulted Guyana into the spotlight as a significant new player in global oil supply chains. According to BIMCO, a prominent shipping industry association, Guyana now accounts for 1.3% of global crude tanker volumes, primarily utilizing Suezmax and VLCC tonnage.
The impact of Guyana’s rise in the oil sector is expected to grow substantially. The U.S. Energy Information Administration estimates that 11 billion barrels of recoverable oil and gas resources remain untapped, suggesting that Guyana’s offshore reserves and export potential are far from fully realized.
For SBM Offshore, the sale represents a strategic financial move. The company plans to use the net cash proceeds primarily to repay the US$0.98 billion project financing, significantly reducing its net debt position.
The full impact of this transaction on SBM Offshore’s financial outlook will be detailed in the company’s Third Quarter 2024 Trading Update, scheduled for November 14, 2024.
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