MODEC wins FPSO contract for ExxonMobil Guyana’s Hammerhead

GEORGETOWN, April 21, 2025 – MODEC has been awarded a contract by ExxonMobil Guyana to develop an FPSO for the Hammerhead project, the company said on Monday.

The contract, issued as a limited notice to proceed, allows MODEC to initiate design work under phase one for FEED, while phase two will include EPC and installation, pending regulatory approvals.

The FPSO is scheduled for potential startup in 2029 and will be stationed at approximately 1,025 metres water depth using a SOFEC Spread Mooring System. It will have the capacity to produce 150,000 bopd along with associated gas and water.

An operations and maintenance enabling agreement has also been signed, setting the framework for long-term operations of MODEC’s fleet in Guyana.

This marks MODEC’s second FPSO for ExxonMobil Guyana, following Errea Wittu under the Uaru development.

“We are incredibly honoured and excited to have been awarded this contract. It is a testament to our team’s dedication, expertise, and commitment to delivering innovative and reliable offshore floating solutions. We look forward to collaborating closely with ExxonMobil Guyana to ensure the successful delivery of this second FPSO, contributing to the advancement of the offshore energy sector in Guyana,” MODEC group president and CEO Hirohiko Miyata said.

The Hammerhead discovery was ExxonMobil’s ninth find offshore Guyana and the fifth on the Stabroek Block in a single year, confirming a new play concept with strong development potential. The Hammerhead-1 well, drilled by the Stena Carron, encountered 197 feet of high-quality oil-bearing sandstone at a water depth of 1,150 metres, and reached a total depth of 4,225 metres. The well lies around 21 kilometres southwest of the Liza-1 well.

The Stabroek block, operated by ExxonMobil affiliate Esso Exploration and Production Guyana with a 45% stake, covers 26,800 square kilometres. Partners Hess Guyana Exploration and CNOOC Nexen Petroleum Guyana hold 30% and 25% interests, respectively. The estimated recoverable resource across the block exceeds 4 billion boe.

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