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Guyana contract helps rake in US$1.59 Billion within 6 months for Japanese ship builder MODEC
Kaieteur News – ExxonMobil Guyana contract with Japanese ship builder, Mitsui Ocean Development & Engineering Company (MODEC), has contributed to the company’s US$1.59 Billion earned within the first six months of 2023.
MODEC is considered the world’s second largest production company of floating, production, storage and offloading systems (FPSOs). MODEC recently published its half-year earnings, which showed improved net profit and revenue in the first half of 2023 which was 15.5% higher than the same period in 2022.
The company expects steady demand for its main business of FPSOs for oil and gas productions, especially in the ultra-deep water large-scale projects in which MODEC has a competitive advantage. MODEC said, “Coexisting with the decarbonization trend and maintaining stable energy supply remains an important issue. In that context, the oil companies are continuing the deep-sea oilfield development projects.”
Under these circumstances, for the six months ended as of June 30, 2023, the total orders on a consolidated basis resulted in US$7,853,105, due to the new orders of construction projects obtained for ExxonMobil Guyana’s Uaru project for which the FPSO will be deployed in the Stabroek block field off the coast of Guyana and Equinor Brazil Energia for which the FPSO will be deployed in the BM-C-33 block field off the coast of Brazil. The consolidated revenue was US$1,588,647 due to the progress in the construction of FPSOs.
In November 2022, it was announced that ExxonMobil Guyana hired MODEC to construct its fifth oil ship.
Exxon and MODEC signed a contract to perform Front End Engineering and Design (FEED) for a Floating Production, Storage and Offloading vessel (FPSO) for the Uaru development project in the Stabroek Block.
MODEC said it will design and construct the FPSO based on its M350 new-build design. The FPSO will be designed to produce 250,000 barrels of oil per day, and will have associated gas treatment capacity of 540 million cubic feet per day, and water injection capacity of 350,000 barrels per day.
The FPSO will also be installed in a water depth of about 2000 meters, using a SOFEC Spread Mooring System and will be able to store around 2 million barrels of crude oil. “We are extremely honored and proud to be selected to provide the FEED services for an FPSO for the UARU project,” commented Takeshi Kanamori, President and CEO of MODEC. “We are equally proud of our robust track record of successful project deliveries in the South America region, and we look forward to cooperating closely with the client and its partners to make this project a success.” The FPSO will be MODEC’s first for use in Guyana, however it will be the 18th FPSO/FSO vessel delivered by MODEC for use in South America.
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