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UK-headquartered energy technology provider TechnipFMC has been hired on a large subsea assignment by ExxonMobil Guyana Limited, a subsidiary of the U.S.-headquartered energy giant ExxonMobil, related to the oil major’s sixth oil development at the Stabroek block off the coast of Guyana.
For TechnipFMC, a large contract is perceived to be between $500 million and $1 billion and this award will be included in inbound orders in 2Q 2024. The deal with ExxonMobil entails the supply of subsea production systems for the Whiptail oil development, representing the U.S. player’s sixth project in the Stabroek block offshore Guyana. ExxonMobil made a final investment decision (FID) to develop the project at the end of last week once all regulatory approvals were secured.
Under the terms of the deal, TechnipFMC will provide project management, engineering, and manufacturing to deliver 48 subsea trees and associated tooling, along with 12 manifolds and associated controls and tie-in equipment. Currently, the UK firm employs nearly 140 Guyanese workers and expects to continue hiring and training trend local staff in support of the latest contract award. TechnipFMC has been in charge of ExxonMobil’s subsea production systems in Guyana since the first contract award in 2017 for Liza Phase 1.
Jonathan Landes, President of Subsea at TechnipFMC, commented: “ExxonMobil Guyana will utilize our Subsea 2.0 systems and manifolds, which help provide schedule certainty. We have already delivered more than 100 subsea trees for ExxonMobil Guyana – the location of one of the world’s fastest developing basins – and we look forward to deepening our relationship with them through Whiptail.”
Covering the development of the Whiptail, Pinktail, and Tilapia fields, along with potential additional resources – should they be feasible and economically viable – the development concept for the Whiptail project encompasses drilling operations via drillships to produce oil from around 40 to 65 production and injection wells. With an expected field life of at least twenty years, the project is anticipated to come online in 2027.
Multiple companies have been picked for work on the $12.7 billion project so far. While SBM Offshore is responsible for front end engineering and design (FEED) work for the FPSO Jaguar, which will work on the Whiptail project, Saipem is handling detailed engineering, procurement, construction, and installation (EPCI) of a subsea production facility.
The Stabroek block, which covers 6.6 million acres or 26,800 square kilometers, is operated by ExxonMobil with a 45% interest. The company’s partners in the block are Hess Guyana Exploration (30%) and CNOOC Petroleum Guyana (25%). The list of ExxonMobil’s five other projects in Guyana includes Liza Phase 1 and Phase 2, Payara, Yellowtail, and Uaru.
The deal with ExxonMobil for Whiptail comes two months after TechnipFMC won a contract with Shell for what is said to be the first integrated engineering, procurement, construction, and installation (iEPCI) project to use high-pressure subsea production systems rated up to 20,000 psi (20K). |
