Middle East and Guyana on schedule for Saipem under two contracts worth $720M

Italy’s engineering, drilling, and construction services company Saipem has secured two new offshore contracts in the Middle East and Guyana for a total amount of approximately $720 million.

The first contract covers engineering, procurement, construction and installation (EPCI) activities for the repair of damaged subsea pipelines in the Middle East. The project, to be performed for a “major client”, as Saipem said, will take around three years.

The second contract is a limited notice to proceed (LNTP) by ExxonMobil Guyana, pending necessary government and regulatory approvals, and involves the EPCI of subsea structures, umbilicals, risers and flowlines (SURF) for the production facility and gas export system of the proposed Hammerhead oil field development project, located in the Stabroek block offshore Guyana at a water depth of around 1,000 meters.

The LNTP is said to allow the company to start early work activities, namely detailed engineering and procurement, to ensure the earliest possible project startup in 2029.

Remaining activities such as construction and installation provided by the contract are subject to government and regulatory approval as well as project sanction.

Saipem will perform the operations using a variety of construction and support vessels, including Saipem FDS2. The logistics will be entirely executed and managed in Guyana through the Vreed-en-Hoop Shorebase Inc. (VEHSI) yard. The duration is expected to be four years.