Saipem gets another subsea job on ExxonMobil’s Guyana project

Italian oilfield contractor Saipem has been awarded a subsea contract by ExxonMobil for the proposed Payara development project located in the Stabroek block offshore Guyana at a water depth of around 2000 metres.

The contract scope includes subsea structures, risers and flowlines, Saipem said on Thursday.

Saipem was earlier awarded subsea contracts for the first two phases of the Liza development in Guyana by ExxonMobil in 2017 and in 2018, respectively.

Subject to government approvals, project sanction by ExxonMobil and its partners Hess, and CNOOC Nexen Petroleum Guyana and an authorization to proceed with the final phase, 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.

A final investment decision for Payara is expected later this year. The Payara development is expected to produce between 180,000 and 220,000 gross barrels of oil per day with startup as early as 2023.

Saipem said that, before the necessary government approvals and project sanction, the contract award would allow the start of limited activities, namely detailed engineering and procurement.

Saipem’s flagship vessels FDS2 and Constellation will perform the offshore operations using an optimized combination of different pipe-lay methods – J-Lay and Reel-lay.

Stefano Cao, Saipem’s CEO, commented: “The long-term basis of our cooperation with our clients is at the very foundation of our business model. Working with ExxonMobil, especially on the continued oil & gas development projects in Guyana, represents both an opportunity and a responsibility to preserve our relationship with stakeholders through sustainable performance.”

Furthermore, Saipem has been awarded certain variation orders for additional works linked to ongoing offshore E&C projects in Saudi Arabia, Azerbaijan, and in the North Sea.

The overall value of the contracts, together with the contract in Guyana, is worth approximately $880 million.