Saipem has been awarded a new offshore services contract by ExxonMobil Guyana for the Longtail project offshore Guyana, Saipem announced on Tuesday.
The award is a limited notice to proceed on EPCI for the subsea structures, umbilicals, risers and flowlines system for the project, which is being developed in the Stabroek Block at water depths of approximately 1,750 metres. The engagement is worth around USD 150 million.
With the notice, Saipem can begin preliminary detailed engineering and procurement activities ahead of government and regulatory approvals and a positive FID by ExxonMobil Guyana and partners. Once the project is approved, Saipem’s full contract is expected to last around four years and have an overall value of USD 750 million-USD 1.5 billion.
Longtail is ExxonMobil’s eighth discovery in the prolific Stabroek block, which is operated by ExxonMobil Guyana with a 45% interest alongside partners Hess Guyana Exploration, with 30%, and CNOOC Petroleum Guyana, with 25%. ExxonMobil is targeting significant increases to its gas production in Guyana, particularly from non-associated gas projects such as Longtail.
Saipem has worked for ExxonMobil Guyana in the Stabroek Block under seven offshore development contracts, of which Liza Phase 1, Liza Phase 2, Payara, and Yellowtail have already been completed.
