MODEC calling the shots for new Guyana-bound FPSO destined for ExxonMobil’s 7th oil & gas project

MODEC Leads Development of New FPSO for ExxonMobil’s 7th Guyana Project
April 21, 2025, by Melisa Cavcic

ExxonMobil Guyana, a branch of the U.S.-based ExxonMobil, has entrusted Japan’s MODEC with overseeing a new floating production, storage, and offloading (FPSO) unit for its seventh oil and gas venture in the Stabroek block off the Guyana coast.

ExxonMobil initiated the process to secure approvals for Hammerhead, its seventh deepwater oil project in Guyana, aiming to increase production by 120,000 to 180,000 barrels per day by 2029. This move would boost the country’s total production capacity to nearly 1.5 million barrels per day.

Situated in the eastern portion of the Stabroek block in the Hammerhead field, about 160 kilometers northeast of Georgetown, the project is set in water depths ranging from 750 to 1,200 meters. ExxonMobil sought environmental clearance from the Guyana Environmental Protection Agency in June 2024 for the development of Hammerhead.

After an environmental impact assessment was deemed necessary, ExxonMobil enlisted MODEC to construct an FPSO vessel for the Hammerhead project.

According to MODEC, the contract signifies a limited notice to proceed, pending essential government and regulatory approvals. The initial phase will involve front-end engineering and design, while the subsequent phase will cover engineering, procurement, construction, and installation.

The project will involve drilling around 14 to 30 development wells, installing and operating subsea equipment, constructing an FPSO, installing a gas export pipeline, and ultimately decommissioning the project.

The development is expected to employ up to 540 individuals during drilling, 600 during commissioning, and 100 to 160 during production operations. MODEC’s President and CEO, Hirohiko Miyata, expressed excitement over being awarded the contract and looks forward to collaborating with ExxonMobil for successful project delivery.

The FPSO Hammerhead, capable of producing 150,000 barrels of oil per day, will be anchored in approximately 1,025 meters of water using a SOFEC Spread Mooring System. This marks MODEC’s second FPSO for use in Guyana after the FPSO Roasted wittu, which is under construction for ExxonMobil’s Uaru project.

ExxonMobil’s projects in Guyana include Liza Phase 1 and Phase 2, Payara, Yellowtail, and Whiptail. Since its initial oil discovery in Guyana’s Stabroek block in 2015, ExxonMobil has made over 30 major discoveries with recoverable resources exceeding 11 billion barrels of oil equivalent.

Currently, six FPSOs with a combined production capacity of over 1.2 million barrels per day are planned for deployment by the end of 2027, with the potential for up to ten units in Guyanese waters as hinted by ExxonMobil.