Friday, September 29, 2023

Westwood expects 2020 to close off with flurry of contract awards, Exxon’s Payara to push uptick

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Sanctioning of the Payara Development offshore Guyana has been driving several contract awards and confirmations with companies in the oil and gas industry ranging from vessel construction to subsea installation.

The US$9 billion project was approved by Guyanese authorities in September after a period of review that was preceded by delays brought on by political uncertainty and a protracted election this year.

“The US$9 billion Payara development will target an estimated resource base of about 600 million oil-equivalent barrels and is the largest single investment in the history of Guyana,” Vickram Bharrat, the country’s Minister of Natural Resources said.

Dutch floater specialist, SBM Offshore confirmed the award of contracts for the next phase of the Payara development on October 1, a day after the project was sanctioned by ExxonMobil, operator at the Stabroek Block. Under these contracts, SBM Offshore will construct, install, and then lease and operate the Prosperity FPSO for a period of up to two years.

Global oil and gas company, TechnipFMC, has also announced the award of contracts for delivery of the subsea system for the Payara development project. The company said it will manufacture and deliver the subsea production system, including 41 enhanced vertical deep-water trees and associated tooling, six flexible risers and ten manifolds along with associated controls and tie-in equipment.

Meanwhile Italian multinational oilfield services company Saipem will be responsible for EPIC Engineering, Procurement, Construction, and Installation of a large subsea production facility for the Payara Development. The facility has approximately 130km of rigid risers, flowlines, jumpers, associated terminations along with the installation of flexible risers, manifolds, dynamic and static umbilicals and flying leads.

Oil and gas market research company Westwood Energy said it anticipates a significant uptick in activity over Q4 2020 from projects such as Payara, that have been given the greenlight.

“This will be driven by formal awards for ExxonMobil’s Payara (Guyana) and ConocoPhillips’ Tommeliten Alpha (Norway) fields…” Westwood said.

The total subsea tree order intake for 2020 is now estimated at 155 units, of which 81 have already been formally awarded as of September 30.

“This is 55 units up on last month due to the sooner than expected government approval of the Payara production license and subsequent FID by ExxonMobil and partners,” Westwood said.

Payara is located approximately 193 km (120 miles) offshore Guyana with water depths of 1,500 m (4,900 ft) to 1,900 m (6,200 ft).

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