ExxonMobil Guyana has issued a Limited Notice to Proceed to Saipem for engineering, procurement, construction and installation (EPCI) of the subsea structures, umbilicals, risers, and flowlines (SURF) system for the Longtail project.
The development is in a water depth of 1,750 m in the Stabroek Block offshore Guyana.
Under the terms of the $150-million award, Saipem can start on preliminary detailed engineering and procurement activities.
Execution of the main EPCI scope remains subject to the receipt of governmental and regulatory approvals and the block partners confirming FID on the project.
Once approved, the full contract, lasting about four years, would likely be valued in the range $750 million to $1.5 billion.
The Longtail discovery was announced in June 2018.
Saipem has worked on all seven prior developments in the block.
