UK-headquartered TechnipFMC has won a large contract from US supermajor ExxonMobil to supply the subsea production system for the highly anticipated Yellowtail project off the coast of Guyana.
While the exact terms were not disclosed, TechnipFMC considers a “large” award to be between $500 million and $1 billion.
As part of the contract, TechnipFMC will provide project management, engineering, manufacturing, and testing capabilities as well as the subsea production system.
The scope of the project includes 51 enhanced vertical deep-water subsea trees and associated tooling, as well as 12 subsea manifolds and associated controls and tie-in equipment.
The Yellowtail project, which includes the Yellowtail-1, Yellowtail-2 and Redtail-1 finds, is still in the development stage.
ExxonMobil intends to install a fourth floating production, storage and offloading system in the Stabroek block. The block is estimated to hold at least 10 billion barrels of oil equivalent in recoverable resources.
“We are very excited to continue our relationship with ExxonMobil through this award, which is our fourth within the Stabroek block. We are proud of our dedicated Guyanese employees and are committed to the continued development and expansion of local capabilities,” Jonathan Landes, president of subsea for TechnipFMC, said.
TechnipFMC has emerged as a preferred vendor to supply subsea hardware for the ExxonMobil-led consortium on Stabroek.
In April 2017, the company was chosen to supply equipment for the Liza deep-water project, including 17 vertical deep-water trees and associated tooling, as well as five manifolds and associated controls and tie-in equipment.
In October 2018, TechnipFMC was awarded a similar subsea contract for the next phase of Liza, including 30 enhanced vertical deep-water trees and associated tooling, as well as eight manifolds and associated controls and tie-in equipment.
In 2020, an ExxonMobil order for the Payara field included 41 enhanced vertical deep-water trees and associated tooling, six flexible risers and ten manifolds along with associated controls and tie-in equipment.
Italian rival Saipem has been enjoying the same run of success with the Stabroek consortium as a preferred vendor of subsea umbilicals, flowlines, risers and associated terminations and jumpers for the Liza and Payara projects so far.