Saipem (SPM.MI) has been awarded new contracts totalling around $1.2bn for work on major projects off Guyana and Egypt.
The first contract has been awarded by ExxonMobil Guyana for its UARU oil field project, located in the Stabroek block offshore Guyana at a water depth of around 2,000m.
The contract scope includes the design, fabrication and installation of subsea structures, risers, flowlines and umbilicals for a large subsea production facility.
The group did not provide a breakdown of contract value.
Saipem, who was previously awarded four other subsea contracts by ExxonMobil Guyana for prior developments in the same area, namely Liza Phase 1 and 2, Payara, and Yellowtail, said it would perform the operations using its own vessels, including FDS2 and Constellation.
Subject to the necessary government approvals, project sanction by ExxonMobil Guyana and its Stabroek block partners and the group’s authorization to proceed with its final phase of development, the award will allow Saipem to start some “limited activities,” namely detailed engineering and procurement.
Stabroek has proved to be a prolific play, with Exxon’s recent discoveries at the Sailfin-1 and Yarrow-1 wells, announced in October bringing the number of discoveries at the block to more than 30 since 2015, and the eighth and ninth finds this year.
By 2030, Exxon expects Guyana to be producing more than 1 million barrels per day of oil.
Secondly, Saipem conformed an award by Petrobel for the transportation, installation and pre-commissioning of 170 km of umbilicals for the Zohr Field off Egypt.
These will be transported and installed between the field’s central control platform and the subsea field at 1,500m water depth, connecting to the existing subsea production systems. The offshore campaign is planned to start during Q3 2023.
Zohr operator Petro Shorouk – a venture that includes Eni and various other companies – said earlier this year that production at the field had reached 2.7 bcf per day, in addition to around 5,000 barrels of condensate.
This year, the company has invested $741 million and drilled two wells on Zohr this year, bringing the total since work began to more than $12 billion.
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