Italy’s Saipem has been awarded new offshore contacts in Australia and Guyana worth a combined US$1.1 billion.
Saipem confirmed Tuesday it had landed a contract on ExxonMobil’s Yellowtail project off the coast of Guyana.
The deal, which is still subject to necessary government authorisations and investment approval, is related to the engineering, procurement, construction and installation of the project’s subsea umbilicals, risers and flowlines.
ExxonMobil’s greenfield Yellowtail development lies in the Stabroek Block, and will see the US supermajor drill between 41 and 67 development wells that will be linked to a newbuild floating production, storage and offloading vessel.
The development will encompass six drilling centres, each equipped with separate oil production, water injection and gas injection wells linked to the spread-moored FPSO, to be situated at water depths between 1700 and 1900 metres.
The Yellowtail FPSO will feature topsides modules with processing capacity of 250,000 barrels per day of oil and 450 million cubic feet per day of natural gas and first oil is anticipated by the end of 2025 or early 2026.
“The recently opened Saipem fabrication facility in Georgetown will be involved in the execution of the Yellowtail project, ensuring a positive and tangible impact on the country,” said Saipem chief executive Francesco Caio.
Saipem confirms Woodside award
Saipem also confirmed Tuesday it had received a notice to proceed from Woodside Petroleum for a contract on the latter’s Scarborough gas field development, offshore Western Australia.
Woodside had already revealed Saipem had been handed the contract for the project’s trunkline installation when it took a final investment decision on the US$12 billion liquefied natural gas development late last year.
The contract will see Saipem complete the export trunkline coating and installation of the pipeline that will connect the offshore Scarborough gas field with the onshore Pluto gas plant.
The scope of the work includes the fabrication and installation of the line structures and pipeline end termination.
Scarborough is being developed through new offshore facilities connected by a roughly 430-kilometre export trunkline to a second LNG train to be built at the existing Pluto LNG onshore facility.
Saipem confirmed offshore operations were expected to start mid-2023, with the company to largely utilise its Castorone pipelay vessel to carry out work on the contract.
The Scarborough field lies about 375 kilometres off the coast of Western Australia and is estimated to contain 11.1 trillion cubic feet of dry gas.
The first phase of development will see the drilling of eight subsea high-rate gas wells, with a total of 13 wells planned to be drilled over the life of the field.