Latest update December 16th, 2024 9:00 AM
Company that won large subsea contract in Guyana eyes another large one for Exxon’s 7th project
Kaieteur News- TechnipFMC, a company that was awarded a large subsea contract for works on ExxonMobil Guyana Limited’s fifth project (Uaru Development) in the prolific Stabroek Block has its eyes set on a potential contract for Exxon’s seventh development-the Hammerhead project.
TechnipFMC potential subsea opportunities in the next 24 months
TechnipFMC is a leading technology provider to the traditional and new energies industry; delivering fully integrated projects, products, and services. Back in 2023, Technip had disclosed that they were awarded a contract between US$500 million and US$1 billion for subsea works on the Uaru development.
Notably, in an outlook update on subsea opportunities around the world in the next 24 months, Technip listed the potential for an over US$1 billion subsea contract for Exxon’s Hammerhead project.
This year, ExxonMobil made an application to the Government of Guyana for its seventh project – Hammerhead. However, the chief policymaker for the sector, Vice President, Bharrat Jagdeo made it clear that there is no guarantee approval would be granted.
Following the official application by the company, Jagdeo was asked to comment on the project when he announced that the government has discontinued an advertisement for a consultant to review the Hammerhead project. According to him, the information the company presented was incomplete. However, Guyana’s Environmental Protection Agency (EPA) has advanced their part in relation to the application that was made for Environmental Authorisation for its seventh project.
Company that won large subsea contract in Guyana eyes another large one for Exxon’s 7th project
Exxon is aiming to receive environmental approval for the Hammerhead project next year. Exxon’s President Alistair Routledge during a recently aired interview said, “Now, we’re initiating the Hammerhead project. The first step is securing the environmental permit, which is underway. We’re hopeful that process will conclude next year.”
Hammerhead is located in the south-central portion of the Stabroek Block, approximately 160 km from Georgetown. Current plans include drilling via drill ships to produce oil using approximately 14 to 30 production and injection wells. Production is expected to begin in 2029 subject to the necessary regulatory approvals and operate for at least 20 years. In the Project Summary submitted by Exxon to the EPA, the company explained that the project is expected to add 120,000 to 180,000 barrels of oil per day production capacity. The Floating Production Storage and Offloading (FPSO) vessel will be capable of storing approximately 1.4 to 2 million barrels of oil. Third-party oil tankers will be scheduled to offload the oil from the FPSO, making the oil available for export to the international market.
Moreover, in a recent update TechnipFMC said that it has installed the first Subsea 2.0® equipment in the waters for the project. This marks a significant step in the project, with tubing head successfully locked into position using a Schilling UHD-II remotely operated vehicle (ROV). The first Subsea 2.0® tree for the project is expected to be installed in the coming months. Subsea 2.0® is TechnipFMC’s configure-to-order subsea production system platform that uses pre-engineered components to streamline manufacturing and accelerate project delivery.
Guyana’s EPA granted the Environmental Permit for ExxonMobil’s fifth project at the Uaru field in the Stabroek Block last year. The Uaru project is expected to cost US$12.7 billion and produce about 250,000 barrels of oil per day after coming on stream in 2026. TechnipFMC had explained that they will provide project management, engineering, and manufacturing to deliver the overall subsea production system. Also, the contract covers 44 subsea trees and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment.
(Company that won large subsea contract in Guyana eyes another large one for Exxon’s 7th project)
(Company that won)
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