Modec wins breakthrough FEED prize for first Guyana floater

Japanese floater specialist Modec has won the front-end engineering and design contract for the floating production, storage and offloading vessel destined for ExxonMobil’s Uaru field development on its prolific Stabroek block offshore Guyana, which will be the contractor’s first FPSO in the South American nation.

The FEED workscope relates to the FPSO’s design while the related funding enables Modec to secure the second M350 hull for FPSO service.

Modec on Tuesday said it would design and then construct the FPSO based on its M350 newbuild design and Uaru will be the second such hull deployment.

The first FPSO based on Modec’s M350 hull design is destined for Equinor’s Bacalhau project offshore Brazil.

The FPSO for Guyana will be designed to produce 250,000 barrels per day of oil and have associated gas treatment capacity of 540 million cubic feet per day and water injection capacity of 350,000 bpd.

Following FEED and subject to Guyanese government approval of the Uaru development, project sanction including US supermajor ExxonMobil taking the final investment decision and its local subsidiary’s release of the engineering, procurement, construction and installation tender, Modec expects to construct the FPSO and install it offshore Guyana.

The Japanese contractor added it anticipates operating the FPSO for an initial 10-year term, with potential options for continuation.

The FPSO will be installed in a water depth of about 2000 metres with a Sofec spread-mooring system. The floater will be able to store around 2 million barrels of crude oil.

Tipped for the prize

Upstream had reported on 13 October that Modec was poised to secure its maiden FPSO contract in Guyana for ExxonMobil’s Uaru project.

This follows a run of success for rival SBM Offshore, with repeat deployment of that company's own Fast4Ward design concept.

“We are extremely honoured and proud to be selected to provide the FEED services for an FPSO for the Uaru project,” said Modec chief executive Takeshi Kanamori.

“We are equally proud of our robust track record of successful project deliveries in the South America region, and we look forward to cooperating closely with the client and its partners to make this project a success.”

The Uaru FPSO will be the first that Modec will deploy offshore Guyana, but it will be the company’s 18th FPSO or floating storage and offloading vessel delivered for operations in South America.