A contract for a floating production vessel offshore Guyana marks the start of the second phase of development of the giant Liza oil field, SBM Offshore said.

The offshore services company said Tuesday that an Exxon Mobil subsidiary in Guyana gave it a contract to start front-end engineering and design work on a second floating production, storage and offloading vessel for the Liza field.

"We are pleased to report that ExxonMobil has selected SBM Offshore to award contracts for the second Liza FPSO, starting with the front-end engineering, for the development of the second phase of the world-class deep water development in Guyana," SBM Offshore CEO Bruno Chabas said in a statement.

Analysis sent from consultant group Wood Mackenzie found reservoirs offshore Guyana are transformative, even for a company like Exxon Mobil.

The first phase of development consists of 17 wells tied to FPSO designed to produce up to 120,000 barrels of oil per day. A second phase concept envisions a second FPSO with the capacity to produce 220,000 barrels per day and a third phase will follow.

SBM said the second FPSO will be moored over the deep waters off the coast of Guyana and have a storage capacity of 2 million barrels of crude oil.

First production from Liza is expected by early 2020. Exxon and its contract partner at Hess Corp. announced their eighth discovery at the field last month.

Hess last week sold off its joint venture interests in the Utica shale basin in eastern Ohio in part to help fund operations offshore Guyana.

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