Italy’s Saipem has secured a limited notice to proceed contract worth about $150 million by ExxonMobil Guyana for work on the Longtail development.
The contract covers preliminary engineering and procurement activities for subsea structures, umbilicals, risers and flowlines in the Stabroek Block, where water depth is around 1,750 meters.
The award allows Saipem to begin detailed engineering and procurement ahead of a final investment decision (FID) and regulatory approvals required for full project execution.
The company said the full engineering, procurement, construction and installation contract could be worth between $750 million and $1.5 billion and is expected to last about four years once approved.
Saipem has previously worked on multiple developments in the Stabroek Block, including Liza Phase 1, Liza Phase 2, Payara and Yellowtail, four projects that have already been completed.