Fourth oil production vessel for Guyana to depart in Q1 2025

SBM Offshore NV

20/11/2024 19:03

HOUSTON, Nov 20 (Reuters) - Guyana's fourth oil floating
production storage and offloading (FPSO) facility is expected to
depart for the South American country in the first quarter next
year, the CEO of U.S. producer Hess  HES.N  John Hess said on
Wednesday.  
    The firm, which alongside Exxon Mobil  XOM.N  and CNOOC
 600938.SS  are responsible for all oil and gas production in
the South American country, expects the facility to add 250,000
barrels per day (bpd) to the group's output capacity by 2026
through its fourth project, Yellowtail.
    "The exciting thing for 2025 is Yellowtail," Hess told the
Wolfe Research oil and gas conference. The FPSO for Yellowtail
"should be leaving the yard and sailing to Guyana in the first
quarter... with the startup then later in the year," he added.
    Builder, SBM Offshore  SBMO.AS , said in February the
facility, called One Guyana, had left the drydock and moved to a
yard in Singapore for completion. Its three topsides modules,
completed in China, were in transit.
    The Exxon-led group, which inaugurated output in the country
in 2019, is soon to reach production of about 675,000 bpd after
the upgrade to the third project. 
    The Yellowtail project, approved by Guyana's environmental
regulator in 2022, will increase the total volume to over
900,000 bpd, potentially turning Guyana into Latin America's
fourth largest oil producer after Brazil, Mexico and Venezuela.
    Hess also said he would consider appealing a Federal Trade
Commission's ban on him taking a board seat at Chevron  CVX.N 
once the Trump administration takes office. Hess and Chevron had
agreed to the ban to move the merger ahead, he said. 

 (Reporting by Gary McWilliams and Marianna Parraga)
 ((marianna.parraga@thomsonreuters.com; +1 713 371 7559; Reuters
Messaging: @mariannaparraga))