Tuesday, December 7, 2021

TechnipFMC wins contract to supply subsea system for Guyana’s US$9 billion Yellowtail Project

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French-American conglomerate, TechnipFMC has been awarded a large contract by ExxonMobil’s affiliate, Esso Exploration and Production Guyana Limited (EEPGL), to supply the subsea production system for the Stabroek block’s US$9 billion Yellowtail Development Project.

For TechnipFMC, a “large” contract is between US$500 million and US$1 billion but the full contract award will not be included in inbound orders until the project receives the final investment decision and government approvals.

OilNOW understands that TechnipFMC will provide project management, engineering, manufacturing, and testing capabilities to deliver the overall subsea production system. The scope of the project includes 51 enhanced vertical deepwater trees (EVDT) and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment.

Jonathan Landes, President of Subsea at TechnipFMC, commented that the company is very excited to continue its relationship with ExxonMobil through this award, which is its fourth contract within the Stabroek block. “We are proud of our dedicated Guyanese employees and are committed to the continued development and expansion of local capabilities,” Landes expressed.

TechnipFMC currently employs more than 60 Guyanese and expects to continue to hire and train additional local staff in support of this award.

OilNOW previously reported that the Yellowtail development, Guyana’s fourth deepwater petroleum production project, is targeting 250,000 barrels of oil per day, the largest volumes yet for a single development offshore the South American country.

According to documents submitted to the Environmental Protection Agency by EEPGL, the project will develop the Yellowtail and Redtail Fields, and potentially additional resources if determined to be feasible and competitive.

Yellowtail’s 250,000 bpd will add to the 120,000 bpd from Liza Phase 1, 220,000 bpd from Phase 2 and 220,000 bpd from Payara, ramping up total production to more than 800,000 bpd by 2025/2026.

Like the other Stabroek projects, Yellowtail will involve drilling of production wells; installation, commissioning and operations of Subsurface Umblicals, Risers and Flowlines (SURF); a Floating Production and Storage Offloading vessel (FPSO) and handling and offloading of produced hydrocarbons. The FPSO will have a storage capacity of 2 million barrels of oil.

In its application to the EPA, ExxonMobil said it is “committed to conducting business in a manner that is compatible with the environmental and economic needs of the communities in which it operates and that protects the safety, security, and health of its employees, those involved with its operations, its customers, and the public.”

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