Netherlands-based SBM Offshore has secured Front End Engineering and Design (FEED) contracts from ExxonMobil Guyana Limited for a new Floating Production, Storage and Offloading (FPSO) vessel to support the Longtail development project offshore Guyana — marking a significant step forward in the Stabroek block’s rapidly expanding deepwater portfolio.
The FEED contracts were awarded by ExxonMobil Guyana Limited, an affiliate of Exxon Mobil Corporation, and the award triggers the initial release of funds to begin FEED activities and allocate a Fast4Ward® hull for the Longtail development project. SBM Offshore For SBM Offshore, this represents a continuation of a deepening partnership with ExxonMobil in the region. CEO Øivind Tangen described it as the company’s sixth FPSO award from ExxonMobil Guyana, calling the project a testament to the strength of SBM’s Fast4Ward approach and its experience in large-scale gas-processing systems.
The Longtail FPSO is set to be a landmark unit in terms of technical scale. The vessel will be designed to process 1,200 million cubic feet of gas per day and produce 250,000 barrels of condensate per day, spread-moored in approximately 1,750 metres of water, with storage capacity of around 2 million barrels of condensate. The Longtail FPSO is expected to rank among the most gas-intensive developments in Guyana to date.
SBM Offshore will design and construct the FPSO using its Fast4Ward programme, utilising the company’s ninth new-build Multi-Purpose Floater hull combined with several standardised topsides modules. The Fast4Ward methodology, which relies on standardised hulls and modular construction, is designed to reduce project timelines and improve execution efficiency — a critical advantage for large-scale deepwater projects.
Under the contracts, ownership of the FPSO is expected to transfer to the client at the end of construction and prior to start-up of operations in Guyana, with construction costs expected to be partially financed through senior loans to be repaid upon transfer of the unit. However, progression beyond FEED is not yet guaranteed. SBM Offshore will further construct and install the FPSO subject to government approvals of the development plan, ExxonMobil’s final investment decision, and project approval to release the second phase of work.
The Longtail field is part of the prolific Stabroek block offshore Guyana. The Longtail discovery was disclosed in June 2018 as ExxonMobil’s eighth oil discovery in the Stabroek block, with the Longtail-1 well encountering approximately 78 metres of high-quality, oil-bearing sandstone reservoir, drilled to 5,504 metres in 1,940 metres of water. The Stabroek block partners are ExxonMobil (operator with 45% interest), Hess (now part of Chevron, 30%), and CNOOC Petroleum Guyana (25%).
The FEED award builds on SBM Offshore’s strong recent momentum in Guyana. In February 2026, the company completed the sale of FPSO ONE GUYANA for approximately US$2.32 billion, using proceeds to fully repay US$1.74 billion of project financing.
