ExxonMobil books New Wave Offshore for work on its $12.7B oil project in Guyana

ExxonMobil Guyana, a subsidiary of the U.S. energy giant ExxonMobil, has hired New Wave Offshore Energy, a marine assurance and advisory player, to handle marine warranty survey (MWS) services for its sixth deepwater oil development project at the Stabroek block off the coast of Guyana.

New Wave Offshore Energy claims the assignment to conduct the MWS job for ExxonMobil’s Whiptail development marks “a significant milestone” in its expanding services, as it encapsulates risk management and safety oversight support for the $12.7 billion oil project in Guyana’s Stabroek block.

Kyle Eddings, New Wave Offshore’s Founder and Chief Executive Officer, commented: “The Whiptail MWS award underscores New Wave Offshore’s growth and our commitment to supporting ExxonMobil Guyana’s offshore operations.

“We are thankful to ExxonMobil Guyana for the confidence they have placed in our technical capabilities, and we look forward to strengthening the partnership we have built working together over the past five years.”

The firm’s scope of work entails marine warranty services across multiple phases of the project, including overseeing safe transportation and installation (T&I) operations. The company will provide an impartial review of the operation to ensure the agreed warranties of the project are met while delivering value-added expertise.

Megan Eddings, New Wave Offshore’s Chief Strategy Officer, underlined: “Our marine warranty survey capabilities combine specialized technical skills with a deep understanding of offshore energy project dynamics.

“The Whiptail contract award demonstrates progress in our strategy to be a leading marine assurance provider in the international offshore energy industry, and we are excited to demonstrate our capability to support complex, high-value infrastructure developments.”

After ExxonMobil took a final investment decision (FID) to develop the Whiptail oil development as its sixth project in Guyana’s Stabroek block, the firm put SBM Offshore in charge of the front end engineering and design (FEED) work for a floating production, storage, and offloading (FPSO) unit destined for the project.

With an expected field life of at least twenty years, the FPSO Jaguar for which a steel strike ceremony was held on November 12, 2024, setting in motion the production of over 300 metric tons of fabricated fixtures for the Stabroek block-bound vessel, is expected to come online in 2027.

Located at a water depth of around 2,000 meters, the Whiptail project plans to develop the Whiptail, Pinktail, and Tilapia fields, alongside potential additional resources, if they end up being feasible and economically viable. 

The project’s development concept entails drilling operations via drillships to produce oil from around 40 to 65 production and injection wells. With a production capacity of 250,000 barrels of oil per day, the FPSO Jaguar will have a daily associated gas treatment capacity of 540 million cubic feet and a water injection capacity of 300,000 barrels per day.

While constructing this FPSO for ExxonMobil, SBM Offshore is also busy with other projects, as illustrated by a recent award of a study, covering the design and the commercial evaluation of various carbon capture systems’ configurations to be installed on future FPSOs for Brazil’s Petrobras.

ExxonMobil Guyana, an affiliate of ExxonMobil, is the operator and holds a 45% interest in the Stabroek block, with Hess Guyana Exploration (30%) and CNOOC Petroleum Guyana (25%), as its partners.

Since Hess is in the process of merging with Chevron, the latter may become ExxonMobil’s new partner, upon resolution of ongoing arbitration over preemptive rights in the Stabroek block joint operating agreement.