Saipem Bags Scarborough, Yellowtail Deals Worth $1.1B

Saipem Bags Scarborough, Yellowtail Deals Worth $1.1B
Saipem has been awarded two new offshore contracts in Australia and Guyana for a total amount of $1.1 billion.

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 received the Notice to Proceed (NTP) from Woodside for a contract related to the Scarborough project. 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 in the Carnarvon Basin, offshore Western Australia, and it will be developed through new offshore facilities connected by an approximately 270-mile export trunkline to the 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 4,600 feet, including the fabrication and installation of the line structures and of the pipeline end termination in 3,100-foot water depth. Offshore operations are planned to start in mid-2023 and will be mainly conducted by the Castorone vessel.

The Scarborough project is operated by Woodside Energy with a 73.5 percent interest while the remaining 26.5 percent is held by BHP Petroleum. The final investment decision for the Scarborough project was made in late November of last year.

The second contract has been assigned to Saipem by Esso Exploration and Production Guyana Limited, a subsidiary of ExxonMobil, for the Yellowtail development project located in the Stabroek block offshore Guyana.

The contract relates to the engineering, procurement, construction, and installation of subsea umbilicals, risers, and flowlines.

Yellowtail is intended to be a greenfield development project encompassing subsea drilling centers – 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.

“The award of these contracts represents a significant confirmation of the trust of our clients in Saipem’s ability to execute complex offshore projects worldwide. 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,” Francesco Caio, CEO and General Manager of Saipem, stated.

To contact the author, email bojan.lepic@rigzone.com


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