Saipem scoops $1.1 billion in new Australia and Guyana awards

Italian oilfield contractor Saipem has been awarded two new offshore contracts in Australia and Guyana for a total amount of $1.1 billion.

Regarding the first contract, Saipem has received the Notice to Proceed (NTP) from Woodside, as the operator for and on behalf of the Scarborough Joint Venture, for a contract related to the Scarborough project, which was subject to a positive final investment decision.

Under the contract, Saipem will complete the export trunkline coating and installation of the pipeline that will connect the Scarborough gas field with the onshore plant.

The Scarborough gas resource is located in the Carnarvon Basin, offshore Western Australia and it will be developed through new offshore facilities connected by an approximately 430 km export trunkline with a 36”/32” diameter to a second LNG train (Pluto Train 2) at the existing Pluto LNG onshore facility. The development will be among the lowest carbon intensity sources of LNG globally. The first cargo is expected to be delivered in 2026.

The work assigned to Saipem is relevant to coating, transportation and installation of the trunkline, at a maximum water depth of 1,400 meters, including the fabrication and installation of the line structures and of the pipeline end termination in 950-meter water depth. Offshore operations are planned to start in mid-2023 and will be mainly conducted by the Castorone vessel.

The Scarborough Joint Venture comprises Woodside (73.5 per cent) and BHP Petroleum (Australia) (26.5 per cent). Woodside and BHP announced on 22 November 2021 that a final investment decision has been made by the Scarborough Joint Venture to proceed with the Scarborough project.

Woodside also this week awarded a contract to McDermott for the engineering, procurement, construction, installation and commissioning (EPCIC) services for its Scarborough floating production unit (FPU) offshore Western Australia.

The second contract has been assigned to Saipem by Esso Exploration and Production Guyana Limited (EEPGL), a subsidiary of ExxonMobil, for the Yellowtail development project located in the Stabroek block offshore Guyana at a water depth of around 1,800 meters.

Saipem explained that, pending the necessary government authorizations and investment approval, the assignment of the contract allows the start of initial engineering and procurement activities necessary to proceed in accordance with the project program.

The contract relates to the Engineering, Procurement, Construction, and Installation (EPCI) of the Subsea Umbilicals, Risers & Flowlines (SURF). Yellowtail is intended to be a greenfield development project encompassing subsea drilling centres, (each equipped with separate oil production, water injection and gas injection wells), linked to a new FPSO.

Saipem’s flagship vessel FDS2 will conduct the offshore operations while Saipem’s fabrication facility in Guyana will build the deepwater structural elements.

Francesco Caio, CEO and General Manager of Saipem, commented: “The Scarborough project will be mainly conducted by the Castorone vessel, our versatile and state-of-the-art asset, representative of the innovative and world-class offer which Saipem is able to provide the market.”

Caio also added that the recently opened Saipem fabrication facility in Georgetown will be involved in the execution of the Yellowtail project. The facility, boasting direct access to the Demerara river, was inaugurated in June 2021.