Guyana is on track to become the world’s largest oil producer per capita, with output expected to reach 1.4 million barrels per day in the coming years. That surge places the small South American state second only to Brazil in Latin America and cements its position at the forefront of the global offshore oil industry.
Central to Guyana’s rise is a fleet of floating production, storage and offloading vessels (FPSOs) that process and transport crude from the prolific Stabroek block, 183km offshore. The newest and most ambitious addition is the Jaguar FPSO, being built by SBM Offshore for ExxonMobil Guyana Ltd. (EMGL), a subsidiary of ExxonMobil. With capacity to process 250,000 barrels of oil per day, store up to 2 million barrels, and handle vast volumes of gas and water, Jaguar will be one of the largest FPSOs in the Caribbean.
With its groundbreaking financing and transformative national impact, the Jaguar FPSO deal represents not just another step in Guyana’s oil boom, but a benchmark for strategic offshore development in Latin America. The $1.5 billion senior secured term loan backing its construction closed in November 2024, and its innovative structure and ambitious tenor earned it Oil & Gas Deal of the Year.
“We cast the net quite broadly to make sure the financing was a success for ourselves and our client, and to achieve a healthy level of oversubscription,” Jacco Bakker, treasurer and investor relations director at SBM, says of the deal which was arranged by 16 financial institutions. “We enjoy a very large and broad array of relationship banks globally, and many of them wanted a piece of such an interesting transaction.”
Known internally as Project Whiptail, the financing was structured as a 3.7-year senior secured loan—remarkably short for a multibillion-dollar offshore development. The maturity date is designed to coincide with Jaguar’s delivery and sale to ExxonMobil, supported by milestone payments and a binding purchase obligation. Guarantees from Exxon Equity Holdings and CNOOC Limited, combined with a pre-completion guarantee from SBM Holding, gave lenders confidence despite the compressed tenor.
“This structure eliminates refinancing risk and showcases the strength of the counterparties,” notes one banker close to the deal. Oversubscription underscored the depth of appetite for a project of such strategic importance, not only for Guyana’s economy but also for global energy markets.
For Guyana, the Jaguar FPSO represents more than new production. Oil revenues are expected to transform an economy that only a decade ago depended on six commodities—sugar, gold, bauxite, shrimp, timber and rice—for nearly 60% of GDP. With hydrocarbons, Guyana is set to see rising living standards, stronger fiscal revenues, and thousands of new jobs.
The project also supports local development through procurement and hiring requirements under the Local Content Act of 2021. Goods and services sourced from Guyanese companies, combined with training and employment for nationals, ensure the benefits ripple through the domestic economy. Over its projected 20-year life, the project is expected to generate induced benefits far beyond the oil sector, boosting tax receipts and spurring investment in infrastructure and services.
Jaguar is also part of SBM Offshore’s drive toward near-zero emissions FPSO technology. It incorporates waste heat recovery systems, closed flare technology, deepwater seawater intake for cooling, LED lighting, and higher-efficiency compressors—design features that cut greenhouse gas intensity significantly.
“The Jaguar includes features that further reduce greenhouse gas emissions,” Bakker says, pointing to the flare gas recovery system and deepwater intake hose. The vessel is also designed with space for potential retrofits, including produced water reinjection, underscoring its adaptability to evolving environmental standards.
Industry data suggests that by 2030, more than 30% of new global oil production will come from deepwater operations, which have an average breakeven cost below $35 per barrel and about 45% lower emissions than onshore production. “FPSOs will continue to play a meaningful role in providing the world with a safe, reliable and sustainable energy mix,” Bakker says.
Beyond oil and gas, SBM is positioning FPSO technology for future offshore opportunities, from renewable energy generation to hydrogen and ammonia production and desalination. In Uruguay, state-owned Ancap is already exploring floating platforms that combine wind energy with desalination to produce green hydrogen.
“Offshore infrastructure in a broad sense is a more strategic opportunity now than ever before and this will help us unlock untapped potential,” Bakker says.
Oil & Gas Financing of the Year
Project Whiptail FPSO Jaguar
$1.5bn Senior Secured Term Loan
Sponsor: SBM Offshore N.V.
Mandated Lead Arrangers: China Construction Bank; Deutsche Bank; DNB; Industrial and Commercial Bank of China; Intesa Sanpaolo; Itau BBA; Mizuho Americas; MUFG (global coordinator); Overseas Chinese Banking Corporation; SMBC
Lead Arrangers: Bank of China; Caixabank ; Clifford Capital; SBI Shinsei Bank; Sumitomo Mitsui Trust Bank
Lenders’ Counsel: A&O Shearman
All supporting financial institutions and law firms were transmitted to LatinFinance by the award category winners. For updates please email awards@latinfinance.com