Subsea 7 and Van Oord have been awarded a large contract from ExxonMobil affiliate Esso Exploration and Production Guyana Limited for the Gas to Energy project offshore Guyana.
The scope of the contract covers the project management, engineering, and installation of approximately 120 miles (190 kilometers) of pipeline in water up to 1,450 meters, with an associated shallow water portion and onshore approach making landfall to the west of the Demerara River, along the coast of Guyana.
The contract is valued at between $150 million and $300 million.
This covers only pipe laying as part of a bigger project that can be in excess of $1 billion.
Headquartered in London, Subsea 7 is a global leader in the delivery of offshore projects and services for the evolving energy industry.
“We are honoured to have been selected for Guyana Gas to Energy. This is an important project to support the Guyanese people and we look forward to continuing our relationship with EEPGL in one of the most prolific and exciting development basins in the world,” commented Craig Broussard, Vice President for Subsea 7 US.
Guyana’s “gas to energy” project involves constructing a 120-mile pipeline from Guyana’s offshore fields to an onshore gas processing plant and a natural gas liquids facility capable of producing at least 4,000 barrels per day. The project is expected to come online in 2024.
Meanwhile, Van Oord is a Dutch maritime contracting company that specializes in dredging, land reclamation and constructing.
Hans van Gaalen, Commercial Director for Van Oord, adds: “Van Oord is honoured to have been selected for the Guyana Gas to Energy project in cooperation with Subsea 7. Developing the coastal infrastructure for the project will allow our Subsea 7 and Van Oord consortium to positively contribute to the development of Guyana’s electricity supply which in turn will reduce Guyana’s dependence on imported fuels.”
ExxonMobil on Tuesday also announced two new discoveries in the Stabroek block offshore Guyana, bringing its total number of discoveries in Guyana to 25 including seven so far this year. The company also announced that production from its two floating production storage and offloading (FPSO) vessels operating offshore Guyana — Liza Destiny and Liza Unity — have exceeded their initial combined production target of 340,000 barrels of oil per day.
A third project, Payara, is expected to produce 220,000 barrels per day with the Prosperity FPSO, expected to come online be the end of 2024. A fourth project, called Yellowtail, is expected to produce 250,000 barrels per day when the ONE GUYANA FPSO comes online in 2025.
ExxonMobil affiliate Esso Exploration and Production Guyana Limited is the operator of Guyana’s 6.6 million acre Stabroek block and holds 45% interest. Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest.
