Saipem (BIT: SPM) has landed a contract worth up to $1.5 billion with Exxon Mobil for work on its newly-sanctioned Whiptail project off Guyana.
The FDS2, Castorone and Constellation vessels will be used for the Engineering, Procurement, Construction and Installation (EPCI) work for development of a subsea production facility.
Saipem has already started initial activities for the Exxon Guyana contract, such as detailed engineering and procurement of long-lead items.
The Italian contractor said the deal is worth $750m – $1.5bn.
As well as its construction vessels, Saipem will use its Guyana Offshore Construction Facility in the Port of Georgetown and another fabrication facility as “proof of the country’s continued commitment to the sustainable growth in the country”.
This deal follows five other contracts awarded by Exxon Mobil to Saipem in Guyana: Liza Phase 1 and Phase 2, Payara, Yellowtail and UARU.
Last week, Exxon Mobil sanctioned the Whiptail project – it’s sixth development in the prolific Stabroek block – costing $12.7 billion.
The development is expected to start production in 2027, adding capacity of 250,000 barrels per day and taking the country’s daily production to 1.3 million barrels.
Whiptail will be developed via the Jaguar FPSO, currently under construction.
Exxon said there are currently 6,300 Guyanese working in support of the Stabroek block, which is 70% of the workforce.
On Whiptail’s approval, president of Exxon Mobil Upstream Company, Liam Mallon, said: “Our unrivaled success in developing the Guyana resource at industry-leading pace, cost and environmental performance is built on close collaboration with the government of Guyana, as well as our partners, suppliers, and contractors.
“The Stabroek block developments are among the lowest emissions intensity assets in ExxonMobil’s upstream portfolio and will provide the world with additional reliable energy supplies now and for years to come.”