Offshore Technology

MODEC secures full EPCI contract to deliver FPSO for Hammerhead project

In April, the offshore contractor was granted a limited notice to proceed, allowing it to begin designing the FPSO.

MODEC has secured the full engineering, procurement, construction and installation (EPCI) contract to deliver a floating production, storage and offloading (FPSO) vessel for the Hammerhead development.

In April, the offshore contractor was granted a limited notice to proceed (LNTP), allowing it to begin designing the FPSO.

This step was aimed at facilitating the earliest possible start-up of the project in 2029, pending necessary government approvals.

Phase one of the contract, which focused on front-end engineering and design (FEED), has been completed.

MODEC stated that it is now progressing to phase two, which involves full EPCI, ensuring execution readiness in accordance with project governance.

MODEC Floating Production Solutions Business Unit head Soichi Ide said: “We are honoured to be entrusted with the full EPCI scope for Hammerhead. This award reflects MODEC’s integrated capabilities to design, build and operate – from concept and FEED through to safe execution and timely delivery of the project.

“Building on the strong progress we have made on the Uaru Project, this milestone further underscores the momentum of our collaboration. MODEC’s strategic relationship with ExxonMobil Guyana positions us to work with them and our stakeholders to create lasting value throughout the project life cycle.”

The FPSO is set to have an initial average production capacity of 150,000 barrels of oil per day (bopd), together with associated gas and produced water handling.

It will be moored in around 1,025m of water, leveraging SOFEC’s spread mooring system.

This will be MODEC’s second FPSO assigned to operations in Guyana after the Errea Wittu unit, which is now being built for ExxonMobil Guyana’s Uaru development.

MODEC will, as it is doing for Uaru, deliver operations and maintenance services for Hammerhead for a ten‑year period, starting from first oil.

Last month, ExxonMobil took a final investment decision on the $6.8bn Hammerhead project, the seventh development in Guyana’s Stabroek block, following regulatory approvals.

The Stabroek block is operated by ExxonMobil Guyana, which holds a 45% interest. Hess Guyana Exploration and CNOOC Petroleum Guyana have 30% and 25% stakes in the block, respectively.