MODEC tasked with full scope of Guyana-bound FPSO for ExxonMobil’s $6.8B oil project

September 30, 2025, by Melisa Cavcic

Following a final investment decision (FID) for its seventh offshore oil development in the Stabroek block, ExxonMobil Guyana, a subsidiary of the U.S.-headquartered ExxonMobil, has put Japan’s MODEC in charge of the full engineering, procurement, construction, and installation (EPCI) work for a floating production, storage, and offloading (FPSO) vessel destined to be deployed at its project off the coast of Guyana.

The full EPCI scope award for the Hammerhead FPSO project comes months after MODEC received a limited notice to proceed (LNTP) in April 2025, enabling it to begin FPSO design activities in support of the earliest possible start-up in 2029, subject to required government approvals.

The Japanese player claims that the first phase of the contract, covering front-end engineering and design (FEED), has since been completed. As a result, the firm is advancing phase two, entailing EPCI execution readiness in line with project governance.

Soichi Ide, Head of Floating Production Solutions Business Unit of MODEC, commented: “We are honored to be entrusted with the full EPCI scope for Hammerhead. This award reflects MODEC’s integrated capabilities to design, build and operate—from concept and FEED through to safe execution and timely delivery of the project.

“Building on the strong progress we’ve made on the Uaru project, this milestone further underscores the momentum of our collaboration. MODEC’s strategic relationship with ExxonMobil Guyana positions us to work with them and our stakeholders to create lasting value throughout the project lifecycle.”

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With an initial annual average production of 150,000 barrels of oil per day (bopd), along with associated gas and water, the Hammerhead FPSO will be moored at a water depth of approximately 1,025 meters, using SOFEC’s spread mooring system.

This will be MODEC’s second FPSO for use in Guyana, following Errea Wittu, which is currently being built for ExxonMobil Guyana’s Uaru project. The Japanese player will provide ExxonMobil with operations and maintenance services for the FPSO for ten years from the first oil date.

After ExxonMobil revealed a $6.8 billion investment to develop Hammerhead as its seventh deepwater oil development in Guyana’s Stabroek block, the firm hired TechnipFMC and Saipem to lend a helping hand in bringing this project to life.

The project will add between 120,000 and 180,000 barrels per day (bpd), increasing the country’s overall production capacity to nearly 1.5 million bpd once it comes online in 2029.

The Stabroek block partners are ExxonMobil (operator with 45% interest), Hess (now part of Chevron, 30%), and CNOOC Petroleum Guyana (25%).