May 18, 2022

TechnipFMC will provide an underwater production system for

Oil services firm TechnipFMC said it had won “a significant” contract with ExxonMobil to supply the subsea production system for the Yellowtail development in the US oil major’s Stabroek block offshore Guyana.

For TechnipFMC, a “big” contract is between $500 million and $1 billion.

The Yellowtail development will be the fourth development in the Stabroek block, after Lisa phase 1, Lisa phase 2, and Payara, with the Dutch SBM Offshore behind the three associated FPSOs, and apparently, in talks for the fourth.

John Hess, CEO of Hess, Exxon’s partner in the project, said last month that the Yellowtail project was expected to have gross capacity of around 250,000 bpd, with first oil expected in 2025.

Subject to government approvals and final project sanction, TechnipFMC will provide project management, engineering, manufacturing and test capabilities to deliver the overall subsea production system. The scope of the project includes 51 Enhanced Deep Water Vertical Shafts (EVDTs) and associated tooling, as well as 12 manifolds and associated controls and connection equipment.

Jonathan Landes, President, Subsea at TechnipFMC, said, “We are very pleased to continue our relationship with ExxonMobil through this contract, which is our fourth in the Stabroek block. We are proud of our dedicated Guyanese employees and are committed to continuing to develop and expand local capabilities. »

TechnipFMC currently employs more than 60 Guyanese and plans to continue hiring and training additional local staff to support this award, the company said.

Over the past few years, Exxon has discovered about 10 billion barrels of oil in the Stabroek block and plans to bring at least six projects online by 2027. It sees potential for up to 10 projects to expand its base of current recoverable resources in the country.