KEY POINTS
- Saipem secured a $150m contract to begin early engineering work on the Longtail offshore project in Guyana.
- The project involves deepwater subsea infrastructure, pending approvals and a final investment decision.
- If fully approved, the contract could grow to between $750m and $1.5bn over four years.
Saipem has secured a $150 million contract from ExxonMobil Guyana to kick off early-stage work on the Longtail offshore development.
The limited notice to proceed allows the company to begin detailed engineering and procurement activities in the Stabroek Bloc.
The contract involves engineering, procurement, construction, and installation of a subsea SURF system, covering structures, umbilicals, risers, and flowlines, at a water depth of about 1,750 metres.
However, full-scale construction will only move forward after regulatory approvals and a final investment decision by ExxonMobil and its partners.
Project Could Grow to $1.5bn
If approved, the full contract could expand significantly, with an estimated value ranging from $750 million to $1.5 billion over a four-year period.
Saipem already has a strong presence in the Stabroek Block, having previously worked on major developments including Liza Phases 1 and 2, Payara, and Yellowtail.
The Longtail oil discovery was announced in 2018 and marked ExxonMobil’s eighth find in the Stabroek Block. The exploration well revealed substantial oil reserves in deepwater conditions.
In parallel, SBM Offshore has been awarded contracts to design a floating production, storage, and offloading (FPSO) vessel for the project. Further development phases will also depend on approvals and ExxonMobil’s final investment decision.
