Guyanese companies scrape handrail contracts on US$6.8B oil ship

Mar 26, 2026 News

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(Kaieteur News) – Two Guyanese companies-one a subsidiary of a Japanese firm managed to scrape the contracts to build the handrails for the US$6.8B Hammerhead Floating Production Storage and Offloading vessel- a situation, which observers say underscores how poorly citizens benefit from the oil industry here.

“These two contracts to build the handrails for a US$6.8B oil ship is a slap in the face of Guyanese and an insult…yet our government will celebrate these menial contracts as local content…” a local businessman commented. The FPSO is being built by Japanese firm- MODEC.

In a press release MODEC said Asequith Guyana Inc. and Asian Sealand Offshore and Marine Inc. (ASOM) were contracted to fabricate structural safety handrails for integration into the FPSO during construction, hailing it as the “growing capability of Guyana’s manufacturing sector to meet global offshore standards.”

According to MODEC the components will be exported to Asia for installation on the topsides modules of the Hammerhead FPSO. Once operational, Hammerhead will have the capacity to produce 150,000 barrels of oil per day (BOPD), along with associated gas and water handling, further embedding Guyana in the global energy supply chain. “This milestone demonstrates MODEC’s sustained commitment to local content. By partnering with Guyanese manufacturers, MODEC is helping to build technical capacity, create high-value opportunities for local businesses, and support long-term, diversified economic growth,” MODEC said in a press release. The company said the successful delivery by Asequith and ASOM “is a clear example of how collaboration between international operators and local industry can produce high-quality results and solidify Guyana’s emergence as a regional hub for energy-related manufacturing and services.”

MODEC is a leading provider of floating production solutions for the offshore energy sector, including Floating Production Storage and Offloading (FPSO) vessels. MODEC performs Engineering, Procurement, Construction, and Installation (EPCI) for FPSOs and, by also owning and operating its FPSOs, provides oil and gas companies worldwide with comprehensive, competitive production solutions.

Back in September last year the Government of Guyana (GoG) approved a Petroleum Production Licence (PPL) for the Hammerhead project-ExxonMobil Guyana Limited (EMGL’s) seventh development in the Stabroek Block. The Stabroek Block which is estimated to hold 11.6 billion barrels of oil is operated by EMGL, who holds 45% interest. The other block partners Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest. The Hammerhead development is located in the south-western portion of the Stabroek Block offshore Guyana and targets the Hammerhead reservoir. 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. First oil from the Hammerhead project is expected by 2029. The project will use a Very Large Crude Carrier (VLCC) conversion-type Floating Production, Storage, and Offloading (FPSO), which will be built by Japanese shipbuilder, MODEC. Notably, a total of 445 million barrels of oil is forecast to be produced with an estimated daily production capacity of 150,000 barrels of oil per day (bpd). Hammerhead oil production will be facilitated through 10 production wells and 8 injection wells. Hammerhead is expected to boost Guyana’s overall production capacity at approximately 1.5 million bpd, with the FDP projecting this by the second quarter of 2029.

Additionally, government had said that the associated gas produced from the Hammerhead Project reservoir will be transferred to the Gas-to-Energy (GtE) pipeline network. Hammerhead is expected to boost energy security, drive industrial growth and create employment across various sectors, further positioning Guyana as a key player in the global energy landscape.

In addition to Hammerhead the other six sanctioned projects under Exxon’s belt include: Liza One, Liza Two, Payara, Yellowtail, Uaru and Whiptail. The first four projects are already in operation, producing an average 650,000 bpd, with an installed capacity of 900,000 bpd. Construction is underway for the Uaru and Whiptail, with Uaru anticipated to start production in 2026, and Whiptail is anticipated for startup in 2027. ExxonMobil has submitted an application for an eighth project, Longtail and has been pushing ahead with developmental plans although government has not formally approved it.

The oil company is aiming to bring all eight developments into production by the end of the decade, targeting a combined output of 1.7 million bpd. Hammerhead adds to the other six sanctioned projects under Exxon’s belt. These include, Liza One, Liza Two, Payara, Yellowtail, Uaru and Whiptail. The first four projects are already in operation, producing an average 650,000 bpd, with an installed capacity of 900,000 bpd. Construction is underway for the Uaru and Whiptail, with Uaru anticipated to start production in 2026, and Whiptail is anticipated for startup in 2027. Earlier this year, Exxon also submitted an application for an eighth project, Longtail. The oil company is aiming to bring all eight developments into production by the end of the decade, targeting a combined output of 1.7 million bpd.

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• FPSO, handrail contracts, MODEC, oil ship

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