Japan's FPSO provider MODEC is moving to the engineering, procurement, construction, and installation (EPCI)
phase for ExxonMobil's floating production storage and offloading (FPSO) vessel, which will work on the U.S.
energy giant's recently sanctioned fifth offshore development project in Guyana.

MODEC disclosed on Monday, 8 May 2023, that it would proceed with engineering, procurement, and
construction on the Uaru FPSO, following a final investment decision for the Uaru project in the Stabroek block,
which was taken by ExxonMobil and its co-venturers on 27 April 2023.

Covering 6.6 million acres (26,800 square kilometres), the Stabroek block is operated by ExxonMobil's affiliate,
Esso Exploration and Production Guyana, with a 45 per cent interest. The company's partners in the block are
Hess Guyana Exploration (30 per cent) and CNOOC Petroleum Guyana (25 per cent).

Back in November 2022, MODEC secured a FEED contract for the Uaru FPSO, to be named Errea Wittu, which
means abundance. This FPSO will be MODEC's first for use in Guyana. It will also be the firm's 18 FPSO/FSO
project delivered for use in South America.

MODEC considers the Uaru FPSO as “a significant addition” to its portfolio. Aside from the EPCI scope for the
FPSO, the company will also provide ExxonMobil with the FPSO operations and maintenance services for ten
years from its first oil production. The $12.7 billion Uaru development will target an estimated resource base of
more than 800 million barrels of oil and include up to 10 drill centres and 44 production and injection wells.

Takeshi Kanamori, President & CEO of MODEC, commented: “We are extremely honoured to be chosen to
provide an FPSO for the Uaru project. This is our first project with ExxonMobil since we delivered FSO Kome
Kribi 1 in Cameroon for Esso Chad in 2003. It is indeed a long-desired new project for MODEC, and we look
forward to cooperating closely with the client and its co-venturers to make this project a success.”

According to the Japanese player, the FPSO will combine the development of the Snoek, Mako and Uaru
resources in the Stabroek block and be deployed approximately 200 kilometres offshore Guyana, at a water
depth of 1,690 meters, using a SOFEC Spread Mooring System. The FPSO will be able to store around 2 million
barrels of crude oil.

Furthermore, MODEC explains that Offshore Frontier Solution (OFS) – a MODEC Group company and a joint
venture with Toyo Engineering Corporation – launched in August 2022, will be responsible for the engineering,
procurement, and construction of the FPSO based on MODEC's M350TM newbuild hull.

Based on the firm's statement, the FPSO will have a topside designed to produce approximately 250,000 barrels
of oil per day. It will have an associated gas treatment capacity of 540 million cubic feet per day, a water injection
capacity of 350,000 barrels per day and produced water capacity of 300,000 barrels per day.

ExxonMobil plans to have six FPSOs with a gross production capacity of more than 1.2 million barrels of oil per
day online on the Stabroek block by the end of 2027, with the potential for up to ten FPSOs to develop the
estimated gross discovered recoverable resources of more than 11 billion barrels of oil equivalent.

MODEC's announcement comes on the heels of the go-ahead for Saipem to proceed with the final phase of
work awarded last year for ExxonMobil's Uaru oil development project.

The final phase of the awarded scope of work includes the design, fabrication and installation of subsea
structures, risers, flowlines, and umbilicals for a large subsea production facility.