In 2024, a third of MODEC’s total revenue came from its operations in Guyana, as the company gears up to supply a large floating production, storage and offloading (FPSO) vessel to the Stabroek Block next year.
In its annual report, the Japanese floating production specialist reported US$1.39 billion in revenue from Guyana, a 68% increase from US$823.75 million in 2023. That figure accounted for approximately 33.1% of MODEC’s total revenue of US$4.19 billion for the year, up from a 23% contribution in 2023.
MODEC entered the market with a breakthrough contract in 2023 for the Uaru development, ExxonMobil Guyana’s fifth sanctioned project offshore Guyana. The FPSO, named Errea Wittu, is currently under construction and is being designed to produce 250,000 barrels of oil per day (b/d).
MODEC also recently announced it has received a limited notice to proceed from ExxonMobil Guyana for work on a second FPSO, to be deployed for the Hammerhead development. The proposed vessel would be smaller in production target, with a design capacity of 150,000 b/d.
The new agreement allows MODEC to begin front-end engineering and design (FEED) work while Exxon works on getting regulatory approvals from the Guyana government. A final contract award would enable construction and installation to begin, keeping ExxonMobil on track for a potential project startup in 2029.
If the full contract is secured, the Hammerhead project is expected to deliver another major revenue injection for MODEC’s Guyana portfolio in the second half of the decade, making the country a key market for the company.
Meanwhile, MODEC’s revenue from Brazil, the company’s largest market, rose to US$2.20 billion in 2024, representing 52.5% of total revenue, similar to the 2023 share. Revenue from Senegal dropped sharply by 49%, from US$450 million in 2023 to US$229 million in 2024. Other lesser contributing but notable markets include Cote d’Ivoire, Australia, Ghana and Mexico.
