Shawcor to provide pipe coating services for ExxonMobil’s Payara

Energy services company Shawcor has entered into a detailed letter of intent with Saipem for the proposed Payara development project located in the Stabroek block offshore Guyana.

Shawcor said on Thursday that the letter of intent was awarded to its pipe coating division.

The coating value of this phase is estimated to be similar to the individual phases of the Liza development that have already been awarded. The combined coating value of Liza phase 1 and phase 2 was approximated at C$110 million ($83 million).

Subject to government approvals, project sanction by ExxonMobil subsidiary Esso Exploration and Production Guyana and its partners Hess and CNOOC, an authorization to proceed with the final phase, and execution of the definitive coating agreement, Shawcor will provide thermal insulation and anti-corrosion coating services from its Veracruz, Mexico facility.

Before the necessary government approvals and project sanction, the definitive contract is expected to allow a limited release of funds to enable procurement activities.

Saipem previously awarded Shawcor coating contracts for the first two phases of the Liza development in Guyana in 2017 and 2018, respectively.

Coating work under the Liza 2 project is currently in progress at Shawcor’s Texas and Mexico facilities and is expected to be completed during the first quarter of 2020.

To remind, Saipem said on Thursday that it was awarded a subsea contract by ExxonMobil on the Payara development at a water depth of around 2,000 meters.

Namely, Saipem will perform the detailed engineering, procurement, construction, and installation (EPCI) of a large subsea production facility.

This facility will include approximately 130 km of flowlines, rigid risers, associated terminations and jumpers together with the installation of manifolds, flexible risers, dynamic and static umbilicals and flying leads. Testing and pre-commissioning of the subsea field will follow installation.

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