Japanese ship builder earned US$2.2B from contract in Guyana within two years

Feb 18, 2025 News

…company raked in US$1.3B in 2024, US$823M in 2023

Kaieteur News- Japanese ship-builder MODEC earned about US$2.2 billion from its contract with ExxonMobil Guyana Limited (EMGL) for the oil giant’s fifth development in the Stabroek Block – Uaru.

Japanese ship builder earned US$2.2B from contract in Guyana within two years

Field development: Mode Chairman, Takeshi Kanamori. (Photo: MODEC)

MODEC is considered the world’s second largest production company of floating, production, storage and offloading systems (FPSOs). The company recently published its 2024 financial results which disclosed that the company earned US$1.3 billion from its contract with Exxon for the Errea Wittu floating, production, storage and offloading systems (FPSO) and earned US$823 million from the contract in 2023.

In November 2022, it was announced that ExxonMobil Guyana hired MODEC to construct its fifth oil ship.

MODEC’s revenue for the full year is US$4.19 billion, a 15% increase from the previous year. Net income was reported as US$220 million. Notably, MODEC’s contract with Equinor in Brazil earned the company US$2.2 billion in 2024, which is more than 50% of the ship builder earnings for that year.

With a topside designed to produce approximately 250,000 barrels of oil per day, the FPSO Errea Wittu will have an associated gas treatment capacity of 540 million cubic feet per day, a water injection capacity of 350,000 barrels per day, and produced water capacity of 300,000 barrels per day. The vessel is expected to be delivered to ExxonMobil in 2026.

The Japanese player has already hired several players for work on the FPSO Errea Wittu.

Formally titled the Uaru Development Project (Uaru), EMGL is proposing to develop its fifth of 10 planned oil production facilities offshore Guyana in the Stabroek Block alone.

This fifth development is to be located in the eastern portion of the Stabroek Block; approximately 200km from Georgetown with production from Uaru Project expected to last approximately 20 to 30 years.

It is envisaged that EEPGL will drill between 40 to 76 wells offshore to support extraction of the oil from below the sea floor.

Each well will be drilled using a drillship and EMGL will install some of the oil production facilities on the sea floor at approximately 1,450 to 1,950 m water depth.

The FPSO will be moored on location in approximately 1,690m of water depth and will remain on location throughout the production stage, according to EEPGL, which will have the peak capacity to produce up to approximately 220,000 barrels to 275,000 barrels of oil per day. Processed oil will be stored in cargo tanks inside the FPSO hull which have the capacity to hold approximately two million barrels of oil.

It was noted that during peak production, approximately every four days, the oil will be pumped from the FPSO to a conventional oil tanker, which is owned/operated by third parties.

According to the company, Exxon will utilise onshore support facilities to support drilling the wells, installing the offshore production facilities, and operating the offshore production facilities. The Project Document suggests “this will include but is not limited to shore bases, warehouses, storage and pipe yards, fabrication facilities, fuel supply facilities, and waste management facilities in Guyana. Helicopters and supply boats will also be needed to support the Project.”

It said that at peak, EEPGL will utilise approximately 1,200 personnel offshore during the stage where the wells are being drilled and the offshore oil production facilities are being installed. This number will decrease to less than 200 personnel during the production phase and a smaller number of personnel will be utilised at the onshore support facilities.

(Japanese ship builder earned US$2.2B from contract in Guyana within two years)

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Brazil, earnings, FPSO, MODEC

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