Saipem secures new US$150M contract as Exxon advances Longtail Project

ExxonMobil Guyana is moving ahead with development of its Longtail project offshore, with company officials confirming with Fueled.gy on Thursday the award of a major subsea contract.

Italian engineering, drilling and construction firm Saipem announced this week that it has been granted a Limited Notice to Proceed (LNTP) by ExxonMobil Guyana Limited for work on the Longtail project, marking another step forward in Guyana’s expanding oil production pipeline.

The initial contract, valued at aboutUS$150 million, covers the engineering, procurement, construction and installation (EPCI) of subsea systems, including structures, umbilicals, risers and flowlines. The project is located offshore Guyana at a water depth of roughly 1,750 metres.

The LNTP enables Saipem to begin preliminary detailed engineering and procurement activities while key approvals are still pending.

The full execution phase of the project remains subject to regulatory clearances and a final investment decision by ExxonMobil Guyana and its Stabroek Block partners.

Once those are secured, the overall contract could expand significantly, with an estimated value ranging betweenUS$750 million and US$1.5 billion and an expected duration of approximately four years.

Saipem is already a major player in Guyana’s offshore sector, having worked on seven development projects within the Stabroek Block.

Of those, four—Liza Phase 1, Liza Phase 2,Payara and Yellowtail—have already been completed, contributing to the country’s rapid rise as a global oil producer.

The Longtail project is among the next wave of developments expected to sustain production growth in the Stabroek Block,which remains one of the world’s most prolific offshore oil basins.

With Exxon officials signalling movement on the project, Longtail is shaping up to be another major contributor to Guyana’s oil output in the years ahead, pending final approvals and investment decisions.

The Longtail project represents ExxonMobil’s eighth oil discovery in the prolific Stabroek Block.

First announced in 2018, the Longtail-1 well encountered approximately256 feet of high-quality, oil-bearing sandstone reservoir, reinforcing theblock’s status as one of the world’s most significant offshore oil discoveries in recent years.

The well was drilled to a depth of over 18,000 feet in waters approaching 2,000 metres deep.

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