A high-level team from Japanese shipbuilding company MODEC recently met with Guyana’s Foreign Secretary, Robert Persaud in Tokyo, where an update on its local content plan and project operations were discussed. Persaud was at the time on a visit to Japan for meetings with government officials.
MODEC has been contracted by ExxonMobil to build a floating production, storage and offloading (FPSO) vessel for its fifth development offshore the South American country, now the fastest growing economy in the world.
It was disclosed at the meeting that a ‘steel cut’ exercise for the FPSO, one of the world’s largest by size and oil production capacity, is scheduled for December.
MODEC officials said they are excited about the company’s operation and investment in Guyana, which is anticipated to provide employment for over 300 persons. The Japanese firm has already submitted a local content plan to authorities.
Persaud told MODEC that the government has a balanced approach for the country’s advancement, between developing the oil sector and protecting the environment.
“The government welcomes Japanese investment and participation in the country’s development and hope this will lead to more Japanese companies investing in Guyana,” Persaud said. He pointed out that investments are welcomed, not only in the oil and gas sector, but other areas of the economy, including food production and manufacturing.
With an oil production design rate of 250,000 barrels per day (bpd) and a storage capacity of 2 million barrels, the vessel, named Errea Wittu, is expected to be equipped with the latest greenhouse gas (GHG) emissions reduction technologies. The M350 hull which will be used, is 350 meters (m) long, 64 m wide, and 33 m in molded depth. It will draw crude from the Uaru, Mako, and Snoek fields.
The FPSO will contribute to ExxonMobil’s plan to ramp Guyana production up to 1.2 million bpd by 2027.
The Ministry of Natural Resources approved the Uaru field development plan and issued the Uaru petroleum production license on April 28, 2023. The Stabroek block co-venturers—ExxonMobil, Hess, and CNOOC—subsequently confirmed their final investment decisions on the US$12.7 billion project.
Exxon’s Guyana projects challenging MODEC, SBM Offshore to break new ground | OilNOW
To date, SBM Offshore has built all the other FPSOs for Exxon’s approved projects offshore Guyana, including the currently producing Liza Destiny and Liza Unity, Prosperity which is about to start producing, and ONE GUYANA FPSO set for first oil in 2025.
