Kaieteur

Map showing the proposed subsea network for the Yellowtail Development Area

By Kaieteur News

GEORGETOWN
Petroleumworld 11 25 2021

French-American multinational, TechnipFMC recently landed a multi-million dollar contract to supply the subsea equipment for ExxonMobil’s fourth project in the Stabroek Block at the Yellowtail Development area. Based on its analysis of this contract alongside its record of others in the industry over the years, Rystad Energy recently noted that it ranks among the top 10 global awards for the century.

In one of its latest pieces, Rystad noted that the scope of works for the subsea contract includes as much as 51 enhanced vertical deepwater trees and 12 manifolds, together with associated controls and tie-in equipment.

The international consultancy group reminded that TechnipFMC defines the Yellowtail contract as large, meaning that it is worth between US$500 million and US$1 billion. Rystad was keen to note that the latest subsea job is set to eclipse work on previous Stabroek phases, which include the Liza Phase One, Liza Phase Two, and the Payara projects.

Expounding on this matter, Rystad said, “TechnipFMC’s giant Payara win, last fall, landed the company a contract to supply 41 enhanced vertical deepwater trees to ExxonMobil’s third phase of the Stabroek development off Guyana. The 41-tree deal was – at that time – the largest subsea tree contract handed out since Aker Solutions landed Kaombo in 2014.”

The consultancy group said, too, that TechnipFMC’s contract partly saved the subsea market from awarding fewer than 100 trees in 2020 – something it said was seen only once this century in 2016.

Rystad, an independent energy research and business intelligence company headquartered in Oslo, Norway, further noted that TechnipFMC has a strong bond with ExxonMobil in Guyana, having secured all previous phases of the Stabroek development. It said the company’s subsea adventure started back in 2017 when the 17 subsea trees for Liza’s Phase One were handed out and followed up with an additional 30 subsea trees for Liza Phase Two in 2018.

“If Yellowtail formally moves ahead, TechnipFMC would have secured almost 140 subsea trees for the Stabroek development alone. This is significant for a subsea market that saw around 140 subsea trees awarded globally last year,” Rystad explained.

It reminded that the contract for ExxonMobil’s next phase of the Stabroek development offshore Guyana is subject to final project sanctioning and government approvals.

It was only last month that Kaieteur News reported that development costs for the Yellowtail project are poised to exceed US$9B or GY$1.8 trillion.

ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) which is the operator of the Stabroek Block, had said costs are expected to be higher, since there would be a greater number of development wells and associated drilling costs when compared to its Payara project which will also cost Guyana $1.8 trillion.

According to project documents, Yellowtail will consist of drilling approximately 41 to 67 development wells (including production, water injection, and gas re-injection wells); installation and operation of Subsea, Umbilicals, Risers, and Flowlines equipment; installation and the operation of a Floating Production Storage and Offloading (FPSO) vessel in the eastern half of the Stabroek Block; and— ultimately—project decommissioning.

The FPSO will be designed to produce up to 250,000 barrels of oil per day. The initial production is expected to begin by the end of 2025–early 2026, with operations continuing for at least 20 years.

The project is expected to employ up to 540 persons during development well drilling, approximately 600 persons at the peak of the installation stage, and 100 to 140 persons during production operations.

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By Kaieteur News

kaieteurnewsonline.com 11 21 2021

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