Saipem Nets $720M for Offshore Work in Middle East and Guyana

Saipem FDS2 vessel (Credit: Saipem)

Italian offshore energy services firm Saipem has secured new offshore contracts in Middle East and Guyana, worth approximately $720 million.

The first contract encompasses the engineering, procurement, construction and installation (EPCI) activities for the repair of damaged subsea pipelines for a major client in Middle East.

The duration of the project is expected to last three years and it emphasizes the growing importance of the maintenance of existing offshore fields, which is an integral part of Saipem portfolio complementing the EPCIC (Engineering, Procurement, Construction, Installation & Commissioning) and EPRD (Engineering, Preparatory works, Removal and Disposal) business.

The second contract is a Limited Notice To Proceed (LNTP) by ExxonMobil Guyana, pending necessary government and regulatory approvals.

It involves the engineering, procurement, construction, and installation (EPCI) of subsea structures, umbilicals, risers and flowlines (SURF) for the production facility and gas export system of the proposed Hammerhead oil field development project, located in the Stabroek block offshore Guyana at a water depth of around 1,000 meters.

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The LNTP allows Saipem to start early work activities, namely detailed engineering and procurement, to ensure an earliest possible project startup in 2029, should the project receive the necessary government approvals.

The performance of the remaining activities, such as construction and installation, provided by the contract is subject to government and regulatory approval as well as project sanction by ExxonMobil Guyana Limited and its Stabroek Block coventurers.

Saipem will perform the operations by using a variety of construction and support vessels, including Saipem FDS2. The logistics will be entirely executed and managed in Guyana through the Vreed-en-Hoop Shorebase (VEHSI) yard.

The duration of the project is expected to last four years.