ExxonMobil has handed MODEC a limited notice to proceed (LNTP) contract for the FPSO for the Hammerhead oil project offshore Guyana.
The award, which remains subject to government and regulatory approval, covers a two-phase program for the front-end engineering and design (Phase 1) followed by engineering, procurement, construction and installation (Phase 2).
Under the terms of the LNTP, MODEC is cleared to start activities now related to the FPSO design to enable startup of the project in 2029. The second-phase construction and installation will proceed following FID by ExxonMobil and its co-venturers in the offshore Stabroek Block.
The FPSO, MODEC’s second for the block after Errea Wittu (under construction for the Uaru development) will be designed to produce 150,000 bbl/d of oil, plus associated gas and water, and will be spread moored in 1,025 m using a system provided by MODEC subsidiary SOFEC.
Simultaneously, ExxonMobil has issued an operations and maintenance enabling agreement for MODEC’s Guyana fleet, allowing the company to perform operations and maintenance of multiple FPSOs under a long-term arrangement.
In Kuala Lumpur, Malaysia, MODEC announced April 16 that it has opened a new execution center as a subsidiary of its Offshore Frontier Solutions company. The center will support MODEC’s global operations, with a focus on supervising subcontracted detailed engineering activities; overseeing hull and module construction and integration at shipyards; and managing offshore installation and commissioning activities.
In addition, the center will lead initiatives related to FEED and pre-FEED, project proposals, R&D and digital analytics. Currently the center employs almost 200 Malaysians, with plans to expand the workforce to more than 800 over the next few years.
Its first project will be the recently awarded FPSO for Shell’s Gato do Mato project offshore Brazil.
