To bolster its offshore energy endeavors, ExxonMobil Guyana has selected Vallourec, a leading tubular solutions provider based in France, to supply line pipe for its sixth development—the Whiptail development project located in the Stabroek Block. This collaboration represents the latest milestone in a long-standing partnership between the two entities.
Under the terms of the agreement, Vallourec will deliver over 180 kilometers of line pipe, including high-grade X80, to support the Whiptail project. This latest contract builds upon a series of previous agreements established under a long-term framework initiated in 2021 between Vallourec and ExxonMobil Guyana.
The Whiptail project, situated within the expansive Stabroek Block, boasts strategic significance within the energy sector, covering a vast area of 26,800 square kilometers off Guyana’s continental shelf.
It will add 250,000 barrels of oil per day (bpd) of oil production capacity by the end of 2027, raising Guyana’s overall capacity to over 1.3M bpd.
The US$12.7B Whiptail project will include up to 10 drill centers with 48 production and injection wells, targeting a resource base estimated at more than 850M barrels of oil.
Philippe Guillemot, Chairman and Chief Executive Officer of Vallourec, expressed his gratitude for ExxonMobil’s continued confidence in Vallourec’s capabilities, emphasizing the company’s commitment to delivering cutting-edge solutions that drive technological advancement and operational efficiency.
“This significant new contract represents the fourth under the 10-year frame agreement signed three years ago with ExxonMobil Guyana. This is also the second order to include our grade X80, demonstrating Vallourec’s ability to deliver solutions to the industry that are both technological and efficiency enablers. This is a new milestone in Vallourec’s long history with ExxonMobil, and I would like to thank ExxonMobil once again for its confidence in Vallourec and our team for this great work,” he commented.
This latest contract marks the fourth milestone under the 10-year framework agreement established between Vallourec and ExxonMobil Guyana, underscoring the strength and durability of their collaborative relationship.
Vallourec said it will serve ExxonMobil Guyana from its state-of-the-art Jeceaba (Minas Gerais) mill which combines large production capacities and premium capabilities.
The floating production, storage and offloading vessel for Whiptail, to be named Jaguar, is under construction by SBM Offshore.
Three developments have already been initiated in the 6.6M-acre Stabroek Block – Liza Phase 1, Liza Phase 2 and Payara – currently produce more than 640,000 bpd of oil per day, while the fourth and fifth developments – Yellowtail and Uaru – are in progress with production startup planned for 2025 and 2026 respectively.
