3 Guyanese companies providing fabrication services on 5th FPSO
…numerous other opportunities for locals – Govt
As more and more Floating Production Storage and Offloading (FPSO) vessels continue to be added to Guyana’s oil and gas sector, so too does the opportunities for local companies. So much so that three Guyanese companies have been contracted to do fabrication work on the fifth FPSO.
The three companies in question are Guyana Oil and Gas Support Services Inc. (GOGSSI), Asequith Guyana, and ZECO Group of Services. According to MODEC, a Japanese company with the contract for the Errea Wittu FPSO in the Uaru project, these three Guyanese companies have been contracted to provide fabrication services.
“It will be one of the most sustainable FPSOs in the world, using an energy production system with a combined cycle turbine on board,” MODEC recently said. Additionally, there is the possibility of additional local cooperation, partnerships, and numerous spin-off benefits for local companies.
In a statement, the Ministry of Natural Resources explained that Guyanese are also being considered for work on Uaru and Whiptail–the two largest oil projects in the ExxonMobil-led Stabroek Block.
“The Environmental Impact Assessments (EIAs) for these two projects acknowledge that there will be opportunities for Guyanese support during the drilling and installation stage. Those documents also note that Exxon is working closely with its contractors and subcontractors in identifying additional suitable opportunities for Guyanese workforce development.”
“This is evidenced by the efforts of its FPSO contractors—MODEC and SBM Offshore. For the Uaru Project, the fifth development in the Stabroek Block, ExxonMobil has contracted MODEC to build an accompanying FPSO named, Errea Wittu. The FPSO will be designed to produce approximately 250,000 barrels of oil per day in 2026.”
It was pointed out by the Ministry that the Local Content Act also provides for Guyanese to be considered for jobs that involve structural fabrication. This ensures that local content opportunities for Guyanese in the oil and gas sector are not only limited to non-technical, but the technical jobs as well.
Mention was also made of the Whiptail project, which will be serviced by the Jaguar FPSO currently being built by SBM offshore. In May, SBM had issued a Request for Information (RFI) seeking Guyanese companies capable of contributing to the building and fabrication of the Jaguar FPSO, to provide design, manufacturing, and supply services.
“Building on the experience to date of FPSOs Liza Destiny, Liza Unity, Prosperity and ONE GUYANA, SBM Offshore continues to commit to local content development in Guyana by sourcing fabrication scope locally and integrating Guyanese engineers into the execution and operational teams,” the Ministry said.
“Additional opportunities are also emerging for Guyanese, too, as ExxonMobil Guyana recently published a request for information (RFI) to identify engineering and construction suppliers who can provide pipe fabrication and assembly, engineering, drafting and installation procedure development services.”
Additionally, the Ministry pointed to Exxon’s plans for a multi-year agreement to fabricate and assemble carbon steel and thermoplastic composite pipe (TCP) well jumpers- two important components for its operations offshore Guyana, right in Georgetown.
Exxon, through its local subsidiary Esso Exploration Production Guyana Limited (EEPGL), is the operator of the Stabroek Block and holds 45 per cent interest in the block. Hess Guyana Exploration Ltd holds 30 per cent interest, and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.
The Liza Phases One and Two and Payara projects, all of which combined are producing over 600,000 barrels of oil per day, account for the three floating, production, storage and offloading (FPSO) vessels operating in Guyana’s Stabroek Block in waters offshore.
When it comes to the Prosperity FPSO, Exxon has been eyeing the possibility of increasing production there. EEPGL President Alistair Routledge had previously explained that they are going through reviews with government ministries and agencies such as the Ministry of Natural Resources (MNR) and the Environmental Protection Agency (EPA).
The current production figures will be further buttressed by the Yellowtail and Uaru developments, which are already underway and are anticipated to contribute 250,000 barrels of oil each following their respective start-ups.
An application for the sixth development, the Whiptail Project, was submitted by the Stabroek Block operator to the Guyana Government last year, and has already received the necessary approvals, with Exxon making its Final Investment Decision (FID) in April. This project will see Guyana producing just over 1.2 million barrels of oil per day by 2027.
In addition to at least these six projects offshore Guyana that Exxon anticipates will be online by 2027, it is also eyeing the possibility of having 10 FPSOs operational by 2030.