Following ExxonMobil’s US$12.7 billion Final Investment Decision (FID) for the Uaru project in the offshore Stabroek Block, the company constructing the Floating Production Storage and Offshore (FPSO) vessel to be used for it announced that it will proceed with engineering, procurement, construction and installation (EPCI).
FPSO builder MODEC said that the vessel, named Errea Wittu – from the indigenous Warrau and meaning abundance – will be the first it has made for this country, but the 18th delivered by MODEC for use in South America.
“Uaru is a significant addition to MODEC’s portfolio and it covers the Engineering, Procurement, Construction, and Installation of the FPSO. MODEC will also provide ExxonMobil with operations and maintenance service of the FPSO for 10 years from its first oil production,” the company said in a statement on Monday.
The company explained that Offshore Frontier Solution Pte Ltd (OFS), a MODEC Group company and a joint venture with Toyo Engineering Corporation, launched in August 2022, will be responsible for the engineering, procurement, and construction of the FPSO based on MODEC’s M350TM new-build hull.
“The FPSO will have a topside designed to produce approximately 250,000 barrels of oil per day and will have associated gas treatment capacity of 540 million cubic feet per day, water injection capacity of 350,000 barrels per day and produced water capacity of 300,000 barrels per day,” it explained .
The Uaru FPSO will be the fifth offshore FPSO in Guyana. “The FPSO will combine the development of the Snoek, Mako and Uaru resources in the Stabroek block. It will be deployed approximately 200 kilometres offshore Guyana, at a water depth of 1690 metres, using a SOFEC Spread Mooring System, and it will be able to store around 2 million barrels of crude oil,” the MODEC statement explained.
President and CEO of MODEC Takeshi Kanamori informed that the Errea Wittu was the first project it was doing with ExxonMobil since it had delivered an FSO in 2003 and that the company was honoured to be chosen to undertake the works.
“… This is our first project with ExxonMobil since we delivered FSO Kome Kribi 1 in Cameroon for Esso Chad in 2003. It is indeed a long-desired new project for MODEC, and we look forward to cooperating closely with the client and its co-venturers to make this project a success,” the MODEC statement quoted him as saying.
Three FPSOs are currently in the country; the Liza Destiny, Liza Unity and the Prosperity, with the first two currently producing more than 380,000 barrels of oil per day. Both the Liza Destiny and Unity are already producing above their rated capacity. The Liza Destiny was assigned a capacity of 120,000 barrels per day and the Liza Unity 220,000 barrels per day.
The Prosperity arrived here early last month, ahead of schedule and it will begin production at the Payara project, following successful commissioning. The Prosperity will have an initial production target of 220,000 barrels of oil per day and an overall storage capacity of around two million barrels.
“The arrival of the Prosperity FPSO is a testament to the strong partnership between ExxonMobil Guyana, the Government of Guyana, our co-venturers and the many suppliers that support our operations. We are excited to contribute to Guyana’s energy future and create lasting opportunities for the nation’s growth and prosperity,” ExxonMobil Guyana Production Manager Mike Ryan said when it arrived.
Production from the Prosperity vessel is expected to up daily production to some 600,000 barrels a day in 2024.
ExxonMobil Guyana yesterday said that installation campaigns were ongoing and development drilling was underway to support Prosperity’s start-up later this year.
A fourth FPSO – One Guyana – is currently around 45% completion and will be used for ExxonMobil’s Yellowtail project. The company said that in March of this year it had successfully entered dry dock at the Keppel yard in Singapore and that three companies would be fabricating fixtures for it.
The One Guyana builds on the design experience of the Liza Destiny, Liza Unity and Prosperity FPSOs. It will be designed to produce approximately 250,000 barrels of oil per day and will have associated gas treatment capacity of 450 million cubic feet per day, and water injection capacity of 300,000 barrels per day. It will be spread moored in water depth of about 1,800 metres and will be able to store around 2 million barrels of crude oil.
The Yellowtail project is ExxonMobil and its partners’ fourth development in the Stabroek Block and is considered the largest undertaking since Guyana became an oil-producing nation in December 2019.
With a target of 1 million barrels of oil produced here daily by 2027 and having some 10 FPSOs by 2030, it seems that with accelerated works the targets will be reached ahead of time.
That all of the FPSOs have come in earlier than anticipated and production starting up ahead of schedule, has underlined the determination of the company – and the government here – to extract oil as rapidly as possible from the country’s lucrative offshore Stabroek Block.
The Guyana Government has made no secret of its desire for accelerated oil production from the Stabroek Block.
The Stabroek Block is 6.6 million acres (26,800 square kilometres). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is the operator and holds 45% interest. Hess Guyana Exploration Ltd holds 30% interest and CNOOC Petroleum Guyana Limited holds 25% interest.
