TechnipFMC PLC said it had won a “substantial contract” from Exxon Mobil Corp to deliver subsea production systems for the Hammerhead field in the Stabroek block offshore Guyana.
“TechnipFMC will provide project management, engineering and manufacturing of subsea production systems supporting both production and water injection capabilities”, the integrated energy contractor said in a press release. “The subsea architecture will include products from the Subsea 2.0® platform, including subsea trees, manifolds and associated controls”.
TechnipFMC values a substantial contract between $250 million and $500 million.
“Hammerhead is our seventh greenfield project award from ExxonMobil Guyana since the first development was sanctioned in 2017″, said Jonathan Landes, president for subsea at TechnipFMC. “Our continued success stems from our ability to provide schedule certainty, built on our proven execution and the benefits of Subsea 2.0®”.
Last week ExxonMobil announced a positive FID (final investment decision) on Hammerhead, earmarking $6.8 billion for the 150,000 barrels per day (bpd) development.
Targeted to be put into production 2029, Hammerhead will grow Stabroek’s production capacity to 1.5 million bpd, the operator said in a statement September 23.
Hammerhead is the seventh project approved in Stabroek, with the fourth and biggest – the 250,000-bpd Yellowtail – started up earlier this year through floating production, storage and offloading vessel (FPSO) ONE GUYANA.
“ExxonMobil is safely producing approximately 650,000 barrels of oil per day from the Stabroek block”, ExxonMobil said. “With the recent successful startup of a fourth FPSO, the ONE GUYANA, the company anticipates growing production to more than 900,000 barrels of oil per day by the end of the year.
“Construction is underway for the fifth and sixth approved projects, Uaru and Whiptail, with Uaru anticipated to start production in 2026, and Whiptail is anticipated for startup in 2027”.
Hammerhead’s development plan includes 18 production and injection wells.
The Hammerhead FPSO has already been under construction. MODEC Inc had won the engineering, procurement, construction and installation contract, as well as the front-end engineering and design contract, for the project, as announced by the Tokyo-based company April 21.
MODEC is also building Uaru’s FPSO, named Errea Wittu.
ExxonMobil said investments committed to Stabroek now exceed $60 billion, with over $7.8 billion paid to the South American country’s Natural Resource Fund since the block went online 2019.
“We continue to set a new standard in Guyana – advancing an impressive seventh project just 10 years after first discovery”, said ExxonMobil upstream president Dan Ammann.
ExxonMobil added, “There are currently some 6,200 Guyanese working in support of Stabroek block operations – which is about 70 percent of the workforce. ExxonMobil Guyana and its contractors have spent more than $2.9 billion with Guyanese suppliers since 2015”.
ExxonMobil operates Stabroek with a 45 percent stake. Chevron Corp’s Hess Guyana Exploration Ltd owns 30 percent. CNOOC Petroleum Guyana Ltd, part of China National Offshore Oil Corp, holds 25 percent.
Source: By Jov Onsat from Rigzone.com