Latest update September 28th, 2026 10:20 AM
Exxon hands MODEC contract to build oil ship for 7th project
—To have capacity to produce 150,000 barrels of oil per day
Kaieteur News- Japanese shipbuilder MODEC has announced that it has been awarded a contract by ExxonMobil Guyana Limited to build a Floating Production, Storage, and Offloading (FPSO) vessel for the seventh project Hammerhead.
In a statement released on Monday, the company said that, “the contract is a Limited Notice to Proceed (LNTP) by ExxonMobil Guyana, pending necessary government and regulatory approval. Phase one encompasses Front-End Engineering and Design (FEED) while phase two covers Engineering, Procurement, Construction, and Installation (EPCI).”
An illustration of what the set up would like. (source MODEC)
The LNTP will allow the company to commence activities related to the design of the vessel which will ensure an early possible project start-up in 2029, once the government gives the greenlight. The second phase which includes construction and installation is also subject to government approval, as well as a project sanction by the operator of the Stabroek Block Exxon and its co-venturers.
“Simultaneously, the Operations and Maintenance Enabling Agreement (OMEA) for MODEC’s Guyana fleet has been established to enable the operations and maintenance of multiple FPSOs under a long-term contractual arrangement,” the company added.
This vessel will have the capacity to produce 150,000 barrels of oil per day, with the addition of water and associated gas. Using a SOFEC Spread Moring System the vessel will be moored at a water depth of 1205 meters approximately. This is the company’s second contract to build an FPSO for Exxon’s Guyana operations, as it follows the Errea Wittu, which is currently being constructed for their Uaru project.
MODEC Group President and CEO, Mr. Hirohiko Miyata, expressed delight for securing the Hammerhead FPSO project. “We are incredibly honoured and excited to have been awarded this contract. It is a testament to our team’s dedication, expertise, and commitment to delivering innovative and reliable offshore floating solutions. We look forward to collaborating closely with ExxonMobil Guyana to ensure the successful delivery of this second FPSO, contributing to the advancement of the offshore energy sector in Guyana.”
On April 20, Kaieteur News reported that the Environmental Protection Agency (EPA) has begun an assessment of ExxonMobil Guyana’s 7th project, Hammerhead.
“Their assessment for Hammerhead, has started, so you have to have an assessment, and they’re looking at all of these things… the FDP’s, etc…If the assessment is favourable, and they move to approve the project, you will hear of that shortly, but I can confirm that the assessment has started,” Vice President, Bharrat Jagdeo stated.
Exxon’s application for the Hammerhead development is pending at the Environmental Protection Agency (EPA). That development has an estimated life of 30 years.
Another foreign company Saipem has also secured a contract for works on the said project.
Saipem signed a LNTP agreement with ExxonMobil Guyana Limited (EMGL) for engineering, procurement, construction, and installation (EPCI) works related to the proposed Hammerhead oil field development project, the seventh project in the prolific Stabroek Block.
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