Modec Awarded Contract by ExxonMobil for FPSO Vessel in Guyana

Floater expert Modec has secured a contract from US supermajor ExxonMobil to develop an FPSO vessel for the Hammerhead project in Guyana. The contract, awarded by ExxonMobil’s Guyana arm, is a limited notice to proceed pending necessary government and regulatory approvals.

Phase one of the contract includes front-end engineering and design, while phase two covers engineering, procurement, construction, and installation. This allows Modec to kickstart activities related to the FPSO design to ensure a potential project startup in 2029, contingent upon government approvals.

The performance of phase two is subject to government and regulatory approval, as well as project sanction by ExxonMobil Guyana and its Stabroek Block co-venturers. Additionally, an operations and maintenance enabling agreement for Modec’s Guyana fleet has been established to facilitate the long-term contractual arrangement for the operations and maintenance of multiple FPSOs.

The Hammerhead FPSO will have the capacity to produce 150,000 barrels of oil per day, along with associated gas and water, and will be moored at a water depth of approximately 1,025 meters. This will be Modec’s second FPSO designated for use in Guyana, following the Errea Wittu currently under construction for ExxonMobil Guyana’s Uaru project.

Recently, the FPSO One Guyana arrived in Guyana for the Yellowtail development, with first oil expected later this year. The vessel completed its journey of over 20,000 km from Singapore in 56 days, joining the Liza Destiny, Liza Unity, and Prosperity FPSOs offshore Guyana.