Exxon awards US$263M, three-year contract to Norwegian subsea firm

Oct 27, 2022 News

– company says happy to get in on ‘flourishing Guyanese market’

By Renay Sambach

Kaieteur News – American oil giant, ExxonMobil Guyana last week, awarded a US$263 million, three-year contract to a Norwegian subsea company for two vessels to support its offshore operation.

One of DOF Subsea vessel (DOF Subsea photo)

Exxon’s affiliate, Esso Exploration and Production Guyana Limited (EEPGL) is the operator of the lucrative Stabroek Block which has over 11 billion proven barrels of oil. EEPGL holds a 45 percent interest in the block. Meanwhile, Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds a 25 percent interest.

On Friday, October 21, the Norwegian company, DOF Subsea announced that it has now established a presence in Guyana with the award of a three-year contract with Exxon’s Guyanese affiliate, stating too that it is ‘happy to get in on the flourishing Guyanese market.’

DOF Subsea was founded back in 2005 and according to the company’s website, it is a leading provider of subsea project and marine services. It was stated too that the company has presence in all major offshore regions around the world.

According to the announcement, the three-year contract is for two vessels. Under the agreement, DOF Subsea will perform Inspection, Maintenance and Repair (IMR), well intervention support, and light subsea construction activities to, “support the growing subsea infrastructures in the Stabroek Block offshore Guyana.”

It was noted that the two Multipurpose Support Construction Vessels with 250-ton active heave-compensated (AHC) crane and two work class Remotely Operated Vehicles (ROV) systems will be deployed in Guyana for 3-year terms, plus a 2-year options. The first vessel will mobilise in late October while the second vessel is planned to commence in January 2023.

“I am extremely happy with this contract award from ExxonMobil Guyana, and entering the important and flourishing Guyanese market. The award further underlines DOF’s leading position in the IMR segment,” were the words of Mons S Aase, CEO, of DOF Subsea.

Moreover, it was noted that the estimated firm backlog for the group is approximately NOK 2.7 billion (US$263M).

Chief Executive Officer (CEO), of DOF Subsea, Mons S Aase

In December 2021, the Government of Guyana (GoG) passed the Local Content Legislation. This law is intended to regulate the way companies operate in Guyana’s oil and gas sector; employ persons, buy services and the way that they procure goods. However, since the passage there have been several complaints by local companies about local content related issue. The issues were brought to the attention of the government, who then signalled the intention of regularizing the law to ensure local companies can also benefit from the countries oil boom.

In a statement on Wednesday, DOF Subsea announced the extension of a contract in neighboring Brazil. According to a statement, Petrobras has awarded an extension of the Skandi Amazonas contract with Norskan Offshore Ltda until March 2023. Skandi Amazonas is a 21.000 class Brazilian flagged AHTS vessel.