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Japanese shipbuilder tenders for works on 7th FPSO for Exxon
…Guyana Govt. yet to approve project
An illustration of an FPSO setup (Source: MODEC)
Kaieteur News – Japanese shipbuilder, MODEC, has issued a tender for offshore installation works on ExxonMobil’s seventh oil development project in Guyana’s Stabroek Block, months after being awarded the contract to build the project’s Floating Production, Storage, and Offloading (FPSO) vessel.
According to a report by industry outlet, Upstream Online, MODEC has released a Request for Information (RFI) to identify potential contractors for the installation of suction piles and chains pre-lay scope of work for the Hammerhead development FPSO. The project is expected to start production in 2029.
The vessel, which remains unnamed, will be MODEC’s second FPSO for ExxonMobil Guyana, following the Errea Wittu being built for the Uaru field. Although the project is pending government approval, Exxon has moved ahead and awarded a Limited Notice to Proceed (LNTP) contract for the Hammerhead FPSO. Notably, Phase One of the contract encompasses Front-End Engineering and Design (FEED) while Phase Two covers Engineering, Procurement, Construction, and Installation (EPCI).
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 green light. 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.
It was disclosed that the FPSO for the Hammerhead development 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 Mooring System, the vessel will be moored at a water depth of approximately 1,205 meters. This is the company’s second contract to build an FPSO for Exxon Guyana’s operations, as it follows the Errea Wittu, which is currently being constructed for their Uaru project.
Exxon began its work to seek regulatory approval for the seventh project back in 2024, and earlier this year, the Environmental Impact Assessment (EIA) for the Hammerhead project was submitted. The company had made a partial submission of the project’s Field Development Plan (FDP) back in 2024.
Hammerhead was announced as Exxon’s ninth commercial discovery in August 2018. The Hammerhead-1 well was drilled in a new reservoir, encountering approximately 197 feet (60 metres) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to 13,862 feet (4,225 metres) depth in 3,773 feet (1,150 metres) of water. The project will target between 120-180 thousand barrels per day (kbd). Exxon is aiming to commence production activities by 2029, following the requisite approvals.
Notably, the daily production capacity being targeted is significantly lower compared to the last three projects sanctioned, each targeting over 200 kbd. Hammerhead-1 is located approximately 13 miles (21 kilometres) southwest of the Liza-1 well and follows previous discoveries on the Stabroek Block at Liza, Liza Deep, Payara, Snoek, Turbot, Ranger, Pacora and Longtail.
The Stabroek Block measures 26,800 square kilometres or 6.6 million acres. To date, six projects have been sanctioned for development. These include Liza One, Liza Two, Payara, Yellowtail, Uaru and Whiptail. The first three projects are already in operation, producing an average of 650,000 bpd, which is likely to be increased before the end of this year with the startup of the fourth development, Yellowtail.
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