Contracts of US$1.1 billion for Saipem

By Andy Brown11 January 2022

Saipem has been awarded two new offshore contracts in Australia and Guyana, for a total amount of US$1.1 billion.

Regarding the Australia contract, Saipem has received the Notice to Proceed (NTP) from Woodside, as Operator for and on behalf of the Scarborough Joint Venture, for a contract related to the Scarborough project. Saipem will complete the export trunkline coating and installation of the pipeline that will connect the Scarborough gas field with the onshore plant.

The Scarborough gas resource is located in the Carnarvon Basin, offshore Western Australia, and it will be developed through new offshore facilities connected by a 430km export trunkline with a 36”/32” diameter to a second LNG train (Pluto Train 2) at the existing Pluto LNG onshore facility.

The development will be among the lowest carbon intensity sources of LNG globally. The first cargo is expected to be delivered in 2026.

Francesco Caio, CEO of Saipem, said, “The award of these contracts represents a significant confirmation of the trust of our clients in Saipem’s ability to execute complex offshore projects worldwide.”

The second contract has been assigned to Saipem by Esso Exploration and Production Guyana Limited (EEPGL), a subsidiary of ExxonMobil, for the Yellowtail development project located in the Stabroek block offshore Guyana at a water depth of around 1,800m.

Pending the necessary government authorizations and investment approval, the assignment of the contract allows the start of initial engineering and procurement activities necessary to proceed in accordance with the project program.

The contract relates to the Engineering, Procurement, Construction, and Installation (EPCI) of the Subsea Umbilicals, Risers & Flowlines (SURF). Yellowtail is intended to be a greenfield development project encompassing subsea drilling centres, linked to a new FPSO (Floating Production Storage and Offloading Unit).

Saipem’s flagship vessel FDS2 will conduct the offshore operations while Saipem’s fabrication facility in Guyana will build the deepwater structural elements.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, World Construction Week Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Longer Reads
The digitalisation of the construction industry
Trackunit looks at key trends in the cohesive development of construction technology
Demolition or refurbishment?
Increasing numbers of politicians and architects are favouring reused buildings over demolition
How job order contracting improves construction efficiency
Job order contracting is suited to certain types of projects where it can potentially save contractors time and money 
CONNECT WITH THE TEAM
Andy Brown Editor, International Construction Tel: +44 (0) 1892 786 224 E-mail: andy.brown@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com
CONNECT WITH SOCIAL MEDIA