Singapore company secures contract for works on 5th FPSO

May 07, 2024 ExxonMobil, News, Oil & Gas

FPSO Errea Wittu concept; Source: ABB

Kaieteur News – Seatrium Limited (Seatrium or the Group) on Monday announced that it has secured a Floating Production Storage and Offloading (FPSO) topsides integration contract from longstanding customer, Japanese shipbuilder MODEC.

The scope of work covers the installation and integration of topside modules onboard the FPSO Errea Wittu, and includes completion and commissioning support for MODEC.

Marlin Khiew, Executive Vice President, Oil & Gas (Americas) of Seatrium, said, “We are pleased to be working with our longstanding customer, MODEC, on yet another FPSO topsides integration project, solidifying our position as the industry leader in FPSO conversions. Through our strong partnership and unwavering dedication, including decades of collaboration with MODEC, we continue to deliver cutting-edge offshore solutions that redefine excellence. Leveraging our deep engineering expertise, international yard footprint, and strong track record, Seatrium provides innovative, reliable, quality, and value-added offshore and marine solutions for our esteemed customers.”

Over the years, Seatrium has built a strong track record in the FPSO space, including delivering a significant number of FPSO projects for MODEC since its first FPSO conversion Whakaaropai in 1996. The Group is currently undertaking integration work for FPSO Bacalhau, which will be operating in the Bacalhau field, Santos Basin, offshore Brazil. Separately, BrasFELS, Seatrium’s yard in Angra dos Reis, Brazil, is also currently executing topside modules fabrication for FPSO Raia.

The FPSO Errea Wittu will be deployed in the Uaru Field, Stabroek Block, approximately 200 kilometers offshore Guyana. The US$12.7 billion Uaru project was sanctioned in April 2023 and marked the startup of construction of the FPSO Errea Wittu back in February.

MODEC had successfully secured an order for the Uaru project from ExxonMobil. Under the engineering, procurement, construction and installation (EPCI) contract, MODEC will deliver the Errea Wittu floating production, storage and offloading (FPSO) vessel to the Stabroek Block. Notably, the revenue made by the company on the order does not include annual leasing costs which are likely to kick in once the ship is up and running.

The Uaru FPSO is expected to play a pivotal role in Guyana’s oil sector, with first oil anticipated in 2026. With an oil production capacity of 250,000 barrels per day (bpd) and a gas production capability of 540 million standard cubic feet per day, alongside a storage capacity of 2 million barrels of crude, it will be one of the largest FPSOs globally.

This capacity sets the stage for the project to be one of the highest revenue-generating projects undertaken offshore Guyana, significantly impacting the nation’s oil production capacity. With the Uaru project’s operation, Guyana’s offshore oil production is set to exceed the 1 million barrels per day mark.

About Seatrium Limited

Seatrium Limited provides innovative engineering solutions to the global offshore, marine and energy industries. Headquartered in Singapore, the Group has over 60 years of track record in the design and construction of rigs, floaters, offshore platforms and specialised vessels, as well as in the repair, upgrading and conversion of different ship types.

The Group’s key business segments include Oil & Gas Newbuilds and Conversions, Offshore Renewables, Repairs & Upgrades, and New Energies, with a growing focus on sustainable solutions to advance the global energy transition and maritime decarbonisation.

As a premier global player offering offshore renewables, new energies and cleaner offshore & marine solutions, Seatrium is committed to delivering high standards of safety, quality and performance to its customers which include major energy companies, vessel owners and operators, shipping companies, and cruise and ferry operators.

Seatrium operates shipyards, engineering & technology centres and facilities in Singapore, Brazil, China, India, Indonesia, Japan, Malaysia, the Philippines, Norway, the United Arab Emirates, the United Kingdom and the United States.

Contract, customer, Japanese shipbuilder MODEC, production, Singapore

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