Italian offshore contractor Saipem has secured a new contract from ExxonMobil Guyana Limited for work related to the Longtail development in the Stabroek Block offshore Guyana.
Valued at approximately $150 million, the award is a limited notice to proceed (LNTP) covering engineering, procurement, construction and installation (EPCI) activities. The scope includes subsea structures, umbilicals, risers and flowlines (SURF) for the Longtail project, located in water depths of about 1,750 m. The contract includes preliminary detailed engineering and procurement activities.
The execution of the full EPCI scope, including construction and installation, is subject to regulatory approvals and a final investment decision (FID). If approved, the contract is expected to run for around four years, with an estimated total value ranging between $750 million and $1.5 billion.
The Longtail discovery, announced in June 2018, represents the eighth oil discovery by ExxonMobil in the Stabroek Block. The Longtail-1 well encountered approximately 78 m of oil-bearing sandstone and was drilled to a total depth of 5,504 m in water depths of 1,940 m.
For the development, SBM Offshore has been selected to carry out front-end engineering and design (FEED) for a floating production, storage and offloading (FPSO) unit.
Saipem has worked under seven offshore development contracts in the Stabroek Block for ExxonMobil Guyana, including Liza Phase 1, Liza Phase 2, Payara and Yellowtail, four of which have been completed.
The Stabroek Block is operated by ExxonMobil with a 45% interest, alongside partners Hess (30%) and CNOOC Petroleum Guyana (25%).
