MODEC: FPSO construction underway for ExxonMobil’s fifth oil development off Guyana
Japanese FPSO operator MODEC has confirmed the start of the construction phase for a floating production, storage, and offloading (FPSO) vessel, which is destined to work on ExxonMobil’s fifth oil development in the Stabroek block offshore Guyana.
According to MODEC, a ceremony to mark the beginning of construction for its inaugural project in Guyana, the FPSO Errea Wittu, which means ‘abundance’ in the local Warrau language, was held on February 2, 2024. This FPSO will be located on ExxonMobil’s Uaru project – the U.S. energy giant’s fifth development on the Stabroek block offshore Guyana – which was sanctioned in April 2023. The start-up of the $12.7 billion Uaru development is targeted in 2026.
“The ceremony commemorated our collaboration with ExxonMobil Guyana and our partnership with the Guyanese companies Asequith Group of Companies, Guyana Oil & Gas Support Services and Zeco Group of Services Inc., which reinforces our commitment in fostering local growth,” explained the Japanese player, which secured a FEED contract for the FPSO Errea Wittu. The company got the green light to proceed with the engineering, procurement, construction, and installation (EPCI) scope for the vessel in May 2023.
Furthermore, MODEC highlights that February 2024 is not only a significant month for the company due to the ceremony that marked the start of the building stage for the FPSO but also for its expansion journey and the announcement of its office in the country. The Japanese player underlines that this milestone underscores both “a strategic move” and its “unwavering” commitment and tangible presence in Guyana.
MODEC has handed out several contracts for this vessel. As a result, Jumbo Offshore Installation Contractors is in charge of the pre-installation of the mooring spread of the FPSO Errea Wittu while the FPSO mooring system, consisting of a total of 19 mooring legs, will be supplied by SOFEC, a MODEC Group company. The Dutch player will use its Fairplayer heavy lift construction vessel for the work.
On the other hand, ABB has been tasked with the delivery of a complete electrical system and associated digital solutions for the FPSO. The Swiss company will provide a topside and hull electrical system to the vessel through a pre-built ABB eHouse modular substation. The firm will also supply power management solutions that will serve to optimize energy efficiency and asset availability of all supplied electrical equipment.
Commenting on the launch of the FPSO construction phase, Katsuyuki Imaizumi, MODEC’s Chief Operating Officer, remarked: “The Uaru project stands as a testament to our dedication and ambition. This project serves as a beacon, guiding us towards a future where sustainability and progress go hand in hand.”
The FPSO Errea Wittu, which will have the capacity to store 2 million barrels of oil and produce approximately 250,000 barrels of oil per day, will come with a gas treatment capacity of 540 million cubic feet per day and a water injection capacity of 350,000 barrels per day.
ExxonMobil plans to have six FPSOs on the Stabroek block by year-end 2027, with the potential for up to ten FPSOs to develop the estimated gross discovered recoverable resources of more than 11 billion barrels of oil equivalent. ExxonMobil Guyana Limited operates the block and holds 45% interest while its partners, Hess Guyana Exploration and CNOOC Petroleum Guyana Limited, hold 30% and 25% interest, respectively.
Rystad Energy underlines that Guyana is second only to Brazil in the number of new FPSO projects set to kick off operations. The country is expected to produce 1.7 million barrels of oil per day by 2035, which would make it the fourth-largest offshore oil producer in the world. The South American FPSO market is on the rise alongside the global FPSO market, which is estimated to reach $20 billion in 2027, based on a report by The Insight Partners.
MODEC has been busy with new FPSO deliveries. One of the recent ones was confirmed in August 2023 when an FPSO achieved its first oil after starting a 25-year charter with Petrobras.
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