Latest update January 18th, 2025 5:27 AM
Contractor for Guyana’s 5th FPSO linked to oil spills in Brazil
…was debarred from bidding for contracts
Kaieteur News – ExxonMobil’s decision to contract Mitsui Ocean Development & Engineering Company (Modec) to deliver Guyana’s fifth floating production, storage and offloading (FPSO) vessel for the Uaru project has raised eyebrows.
Modec has been linked to two oil spills that occurred in Brazil, which led to a disciplinary measure instituted by Petrobras, Brazil’s national oil company.
In August 2019, Modec informed Petrobras that cracks were identified at the hull of FPSO Cidade do Rio de Janeiro at the Espadarte field, 130 km off the coast of Brazil.
During the weekend, 1.2 cubic meters of residual oil leaked from the unit, which was identified and recovered. In a new overflight on August 26, 2019, the presence of oil at sea was perceived in an estimated amount of 6.6 cubic meters.
FPSO Cidade de Río de Janeiro
At the time, Modec had already mobilized seven vessels at the site of the spill for recovery and suspension, aside from four support vessels and one chopper for overflights.
Modec explained that FPSO Cidade do Rio de Janeiro had been out of production since July 2018 and was in the departure procedure from the Espadarte field. It said that all crew members were disembarked over the period between August 24 and 26, 2019, and arrived safely at shore. However, this was not the first time an oil spill had occurred in relation to FPSO Cidade do Rio de Janeiro. In January 2019, oil spilled from a cargo tank on the FPSO, amounting to approximately 4.9 cubic meters to the sea. Modec said effective control measures were put in place resulting in full control of the leak as of January 3, 2019.
Later, in April 2021, Modec received a notification from Petrobras that its eligibility to participate in new competitive bidding by Petrobras had been suspended for 13 months from March 31, 2021. According to the notification, the main basis for this administrative sanction was losses to Petrobras presumably caused by the performance of three FPSO vessels under charter services that Modec had provided in the past and/or was providing to Petrobras at the time. These FPSOs included FPSO Cidade do Rio de Janeiro, from which the two spills occurred.
Brazil has been Modec’s main and most promising market for a number of years. Hence, the sanction represented a major concern for the company.
Despite these incidents, ExxonMobil has hired Modec to deliver the fifth FPSO for the Uaru project in Guyana. This move comes after ExxonMobil utilized the services of SBM Offshore for the first four FPSOs and decided on Modec for the fifth. The decision was based on considerations including the desire for competition in Guyana’s FPSO market. So far, Modec has been hired to perform front-end engineering and design (FEED) for the FPSO.
Modec said it would design and construct the FPSO for Exxon’s Uaru project based on its M350 new-build design. The FPSO will be designed to produce 250,000 barrels of oil per day, with associated gas treatment capacity of 540 million cubic feet per day and water injection capacity of 350,000 barrels per day.
The decision to hire Modec despite its links to the spills means right-thinking Guyanese will now have to keep keen eyes on Modec to ensure such accidents are not repeated offshore Guyana. It is crucial that ExxonMobil conducts thorough due diligence on all contractors it engages to ensure that their track records do not pose any risks to the environment.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Burnham must be having a good laugh
Peeping Tom… Kaieteur News- Each week, the more Bharrat Jagdeo speaks, the more the lines between party and government... more
Clarifying misconceptions about the Panama Canal
Sir Ronald Sanders (Antigua and Barbuda’s Ambassador to the US and the OAS) By Sir Ronald Sanders Kaieteur News–... more
Weekend Cartoon
