Shawcor pens Liza pipe coating deal with Saipem

Energy services company Shawcor has been assigned work from Saipem valued at approximately C$110 million ($85M) on the Exxon-operated Liza I and II deepwater development projects located offshore Guyana.

Shawcor said on Thursday that the company’s pipe coating division would provide thermal insulation and anti-corrosion coating services for the Liza I and II projects offshore Guyana.

The company added that the coating work for the Liza I project began in March 2018 at Shawcor’s Channelview facility and additional work would be completed at Shawcor’s facility in Veracruz, Mexico.

According to Shawcor, work on Liza I is expected to be completed during the first quarter of 2019.

Coating work under the larger Liza II project, which is conditional on a final investment decision (FID) by the pipeline operator, is also expected to be executed at the Veracruz and Channelview facilities.

Saipem’s Liza deals 

The Italian company Saipem was awarded an EPCI contract for the SURF package on the Liza I project operated by Esso Exploration and Production Guyana Limited, an affiliate of ExxonMobil, back in May 2017.

Saipem’s duties under the contract include engineering, procurement, construction, and installation of risers, flow lines, and associated structures and jumpers.

The award also includes the transportation and installation of umbilicals, manifolds, and associated foundations for the production, and water and gas injection systems.

Saipem was awarded the contract for the second phase of the Liza field development in August 2018. Once the Liza 2 has been sanctioned, Saipem will perform tasks on the Liza II project identical to those described in the Liza I deal.

Liza discovery

The Liza field is located in the Stabroek block, which covers almost 27,000 square kilometers, circa 200 kilometers offshore Guyana. The field is a subsea development with a recoverable resource estimate of over one billion barrels of oil equivalent.

Esso Exploration and Production Guyana Limited is the operator and holds 45 percent interest. Hess Guyana Exploration Ltd. holds 30 percent interest, and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.

Liza Phase 1 involves the conversion of an oil tanker into a floating, production, storage and offloading (FPSO) vessel named Liza Destiny, along with four undersea drill centers with 17 production wells. Construction of the FPSO and subsea equipment is underway in more than a dozen countries. Liza Destiny will have a production capacity of 120,000 barrels of oil per day.

A second FPSO with a capacity of 220,000 barrels per day is being planned as part of the Liza Phase 2 development, and a third is under consideration for the Payara development. The oil major has already applied for an environmental permit to develop the second phase of Liza with start-up expected by mid-2022.

Together, these three developments will produce more than 500,000 barrels of oil per day, according to ExxonMobil.

Offshore Energy Today Staff