Exxon Mobil Corp.’s Guyana subsidiary has awarded Saipem a subsea contract for the proposed Payara development project in the Stabroek Block offshore the South American country, Saipem reported Thursday.

The scope of the contract from Esso Exploration and Production Guyana Limited (EEPGL) includes subsea structures, risers and flowlines for Payara, which will be located in approximately 6,562 feet (2,000 meters) of water, noted Saipem.

“The award of this new contract strengthens Saipem’s presence in Guyana,” commented Saipem CEO Stefano Cao in a written statement emailed to Rigzone. “The long-term basis of our cooperation with our clients is at the very foundation of our business model.”

Thursday’s announcement marks Saipem’s latest subsea win from EEPGL. In 2017 and 2018, the ExxonMobil unit awarded Saipem subsea contracts for the first two phases of the Liza development in the Stabroek Block in 2017 and 2018, respectively. The new Payara contract award enables Saipem to begin limited activities: detailed engineering and procurement.

Pending government approvals, project sanctioning by EEPGL and partners HESS Guyana Exploration Ltd. and CNOOC Nexen Petroleum Guyana Ltd. and authorization to proceed with the final phase, Saipem noted that it will perform the detailed engineering, procurement, construction and installation (EPCI) of a large subsea production facility. The contract recipient stated the facility will include approximately 81 miles (130 kilometers) of flowlines, rigid risers, associated terminations and jumpers. Moreover, it would install manifolds, flexible risers, dynamic and static umbilicals and flying leads. Saipem would test and pre-commission the subsea field afterward.

Saipem also noted that its FDS2 and Constellation flagship vessels will perform offshore operations using a mix of J-Lay and Reel-lay pipe-lay methods.

“Working with ExxonMobil, especially on the continued oil and gas development projects in Guyana, represents both an opportunity and a responsibility to preserve our relationship with stakeholders through sustainable performance,” stated Cao. “Our relentless attention to safety, environment, innovation and cost efficiency are key to consolidate our position as one of the leading companies in the offshore subsea.”

Saipem also stated Thursday that it has won orders tied to ongoing engineering and construction projects in Saudi Arabia, Azerbaijan and in the North Sea. The company noted the value of those orders, together with the Guyana contract, totals approximately US$880 million.

Saipem is not the only company to recently win significant Payara-related work. As Rigzone reported last week, ExxonMobil has awarded SBM Offshore front end engineering and design contracts for a floating production storage and offloading (FPSO) vessel for the development.

To contact the author, email mveazey@rigzone.com.

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