SBM Offshore Awarded FEED Contracts for the Longtail Project in Guyana

Why It Matters

The deal deepens SBM Offshore’s partnership with ExxonMobil, reinforcing its position in the fast‑growing deepwater gas market and boosting Guyana’s local content ecosystem. Successful delivery will enable ExxonMobil to monetize one of the world’s largest offshore gas plays faster.

Key Takeaways

• SBM Offshore wins sixth ExxonMobil FPSO contract in Guyana
• FEED study includes 1,200 bcf/d gas and 250 k bbl/d condensate
• Fast4Ward hull will operate in 1,750 m water depth
• Project supports local content, employing Guyanese engineers
• Senior loan financing repaid upon FPSO transfer to client

Pulse Analysis

The offshore oil‑and‑gas sector is increasingly reliant on floating production solutions to tap remote, deepwater reserves. SBM Offshore’s Fast4Ward program, now entering its ninth new‑build hull, exemplifies the modular, standardized approach that reduces lead times and capital exposure. By securing the Longtail FEED contract, SBM not only adds a high‑capacity FPSO to its portfolio but also showcases its ability to deliver complex gas‑processing facilities that meet stringent performance criteria in ultra‑deep water environments.

Technical specifications of the Longtail FPSO underscore the engineering challenges of Guyana’s offshore basin. Designed to handle 1,200 bcf of gas and 250,000 bbl of condensate daily, the vessel will operate at a water depth of roughly 1,750 meters—one of the deepest mooring sites for an FPSO to date. The Fast4Ward hull integrates proven hull architecture with standardized topside modules, enabling rapid assembly while maintaining the flexibility needed for high‑volume gas treatment and storage of two million barrels of condensate.

Financially, the contract triggers an upfront fund release from ExxonMobil and introduces senior loan financing that will be settled upon vessel handover, aligning cash flow with project milestones. Beyond the balance sheet, the project reinforces ExxonMobil’s long‑term gas development strategy in the Guyana‑Suriname basin and bolsters local content by sourcing fabrication and engineering talent within the country. For investors, SBM’s asset‑backed model and recurring revenue from operations and maintenance contracts provide a predictable cash stream, while the Longtail FPSO positions the company at the forefront of the next wave of deepwater gas production.