Saipem to Proceed with Offshore Guyana Work
A unit of Exxon Mobil Corp. (NYSE: XOM) has authorized Saipem (OTCMKTS: SAPMY) to proceed with the final phase of the Payara development project in the Stabroek Block offshore Guyana, Saipem reported Monday.
With the clearance from Esso Exploration and Production Guyana Limited (EEPGL), Saipem stated that it can finalize detailed engineering and procurement activities and fully execute the contract scope.
In Nov. 2019, Saipem revealed that it had won the Payara subsea development contract from EEPGL – subject to final investment decision – for the detailed engineering, procurement, construction and installation (EPCI) of a large subsea production facility, the contract recipient stated. As Rigzone reported at the time, the facility will incorporate:
- rigid risers
- associated terminations
- flexible risers
- dynamic and static umbilicals
- flying leads.
Saipem noted this week that it had been authorized to begin initial activities – detailed engineering and procurement of long lead items – while awaiting project sanctioning.
“During this initial phase, Saipem’s engineers also delivered design optimizations, which are generating additional value to the project, despite the impacts and restrictions due to COVID-19 and challenging market conditions,” the firm explained.
Saipem pointed out that its flagship vessels Saipem FDS2 and Saipem Constellation will perform the offshore installation, adding that a soon-to-be-completed construction yard in Guyana will fabricate some of the subsea items. The company stated the yard – constructed by local Guyanese contractors – will feature a heavy load-bearing jetty, Guyana’s largest heavy-lift crane and specialized welding and testing equipment.
The Payara development will link a total of 41 production, water injection and gas injection wells, continued Saipem. The company has also won EPCI contracts for subsea flowlines, umbilicals and risers for the EEPGL-operated Liza phases 1 and 2 developments in Stabroek.
“These landmark activities in Guyana, emphasized by leading-edge technologies and local content, will help set the industry standard for sustainable performance in frontier oil and gas regions,” the company concluded.
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