Modec secures deal for ExxonMobil FPSO in Guyana

MODEC, a specialist in floating production systems, has secured a significant contract from ExxonMobil to develop a Floating Production Storage and Offloading (FPSO) vessel for the Hammerhead project in Guyana. This contract, issued by ExxonMobil’s Guyana division, is a limited notice to proceed, contingent upon obtaining necessary government and regulatory approvals. The project aims for an ambitious startup in 2029, pending the completion of its first phase, which focuses on front-end engineering and design.

Project Overview and Future Prospects

The Hammerhead FPSO is designed to have a production capacity of 150,000 barrels of oil per day, along with the ability to handle associated gas and water. It will be anchored at a depth of approximately 1,025 meters, showcasing advanced engineering capabilities. The contract includes two phases: the initial phase involves detailed engineering and design work, while the second phase will encompass engineering, procurement, construction, and installation. However, the progression to the second phase is dependent on receiving the necessary government approvals and project sanction from ExxonMobil and its co-venturers in the Stabroek Block.

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In addition to the Hammerhead project, MODEC has established an operations and maintenance agreement for its fleet in Guyana. This long-term arrangement will facilitate the management of multiple FPSOs, enhancing operational efficiency in the region. The Hammerhead FPSO will be MODEC’s second unit in Guyana, following the ongoing construction of the Errea Wittu for ExxonMobil’s Uaru project.

Recently, the FPSO One Guyana arrived in Guyana, set to support the Yellowtail development, with first oil expected later this year. The vessel traveled over 20,000 kilometers from Singapore in just 56 days, arriving on schedule. It will join other FPSOs, including the Liza Destiny, Liza Unity, and Prosperity, already operational offshore Guyana, marking a significant expansion in the region’s oil production capabilities.