Saipem given go-ahead for early studies for Longtail SURF facilities
ExxonMobil Guyana has issued a Limited Notice to Proceed (LNTP) 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.
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About the Author
Jeremy Beckman
Editor, Europe
Jeremy Beckman has been Editor Europe, Offshore since 1992. Prior to joining Offshore he was a freelance journalist for eight years, working for a variety of electronics, computing and scientific journals in the UK. He regularly writes news columns on trends and events both in the NW Europe offshore region and globally. He also writes features on developments and technology in exploration and production.