Another Milestone in Guyana’s Oil Story: ExxonMobil Awards MODEC a Second FPSO Contract
ExxonMobil has awarded a contract to MODEC for the construction of a second floating production, storage, and offloading (FPSO) vessel for the Stabroek Block offshore Guyana, marking yet another significant milestone in the country’s rapidly evolving energy landscape.
The vessel, named Errea Wittu, will support the Uaru development on the prolific Stabroek Block and is expected to begin production in 2026.
This announcement follows closely on the heels of another significant milestone: ExxonMobil’s selection of MODEC for front-end engineering and design (FEED) work on a separate FPSO for the Hammerhead development, further signaling the company’s long-term strategic commitment to Guyana.
The Errea Wittu FPSO will be among the most technically advanced vessels in the region, capable of producing up to 250,000 barrels of oil per day, storing 2 million barrels, and compressing 540 million cubic feet of natural gas per day. It will be MODEC’s first FPSO in Guyana, joining SBM Offshore and TechnipFMC as major contractors in ExxonMobil’s multi-decade development plan.
In the Hammerhead FEED contract, MODEC is also exploring a novel marine and hull design, incorporating its next-generation M350 hull, which is optimized for ultra-deepwater and high-capacity projects. This could signal a shift in FPSO design strategy toward even more scalable, modular, and cost-efficient infrastructure—adaptable for multiple developments across the basin.
These twin announcements reflect a robust confidence in Guyana’s offshore reserves, which now exceed 11 billion barrels of oil equivalent and are expected to grow. ExxonMobil and its partners, Hess and CNOOC, are currently producing from the Liza and Payara fields, with additional projects—Yellowtail and Uaru—underway.
From an economic perspective, this sustained offshore expansion places increasing importance on transparent governance, prudent fiscal management, environmental oversight, and capacity building for local firms and professionals. The diversification of contractors—SBM Offshore, MODEC, and TechnipFMC—suggests not only competitive pressures but also an opportunity for Guyana to negotiate stronger local content outcomes.
The Guyana Business Journal will continue to monitor how these developments align with national aspirations for inclusive growth, sustainability, and industrial diversification. The arrival of Errea Wittu and the initiation of Hammerhead’s design phase mark both a technological and geopolitical inflection point in Guyana’s energy trajectory.
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Guyana Business Journal
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