SBM Offshore completes sale of FPSO Liza Unity to ExxonMobil Guyana for $1.26bn

SBM Offshore and ExxonMobil Guyana Limited, an affiliate of ExxonMobil Corporation, have successfully completed a significant transaction involving the FPSO Liza Unity. The deal, finalized ahead of the February 2024 lease term end, is valued at approximately US$1.26 billion.

Details of the Transaction

• The transaction allows ExxonMobil Guyana to assume ownership of the FPSO Liza Unity. SBM Offshore, a leader in the offshore energy sector, will continue to operate and maintain the FPSO until 2033, ensuring continuity in operational expertise.
• The total cash consideration of the deal is around US$1.26 billion, marking a major financial milestone in the offshore industry.
• SBM Offshore plans to use the net cash proceeds primarily for the full repayment of the US$1.14 billion project financing. This strategic move is expected to significantly decrease the company’s net debt position.

Operational Performance and Impact

• The FPSO Liza Unity has been operational since February 2022. In 2023, it transitioned to an integrated operations and maintenance model. This approach combines the expertise and experience of both SBM Offshore and ExxonMobil, leading to exceptional operational performance.
• The acquisition of the FPSO unit by ExxonMobil Guyana underlines the importance of strategic partnerships and operational excellence in the oil and gas industry.

Strategic Implications and Future Outlook

The completion of this transaction represents a pivotal development in the energy sector, showcasing the collaboration between major industry players. It also aligns with the ongoing efforts in the industry to enhance operational efficiency and financial stability.