Saipem Gets Go-Ahead for ExxonMobil’s Guyana Oil Development

Castorone vessel (Credit: Saipem)
Castorone vessel (Credit: Saipem)

Italian offshore energy services firm Saipem has received authorization to proceed with the execution of works for ExxonMobil’s Whiptail oilfield development project, in the Starbroek block offshore Guyana.

The go-ahead from ExxonMobil Guyana Limited has been granted following the final project sanction by the client and its coventurers and to the necessary regulatory clearances.

Saipem’s scope of work entails the detailed Engineering, Procurement, Construction, and Installation (EPCI) of a subsea production facility, as part of the contract the company secured in November 2023.

The contract is valued between $750 million and $1.5 billion.

As previously announced, Saipem had already started initial activities, namely the detailed engineering and procurement of the long lead items, and following the issued authorization the company can proceed with the execution of the remaining project activities.

Saipem's vessels FDS2, Castorone and Constellation will be used for the offshore installation.

Furthermore, for the on-site construction of part of the submarine items, Saipem will deploy its Guyana Offshore Construction Facility, located at the Port of Georgetown, and an additional local fabrication facility, proof of the company’s continued commitment to the sustainable growth in the country.

Saipem had been previously awarded five additional contracts by ExxonMobil Guyana for projects in the same region, which include Liza Phase 1 and Phase 2, Payara, Yellowtail and Uauru.

The Whiptail project is planned to have an output of 250,000 bpd and an upper production limit of 263,000 bpd.

Earlier in April, ExxonMobil hired SBM Offshore to construct and install the Jaguar FPSO.

The FPSO will be designed to produce 250,000 barrels of oil per day, will have associated gas treatment capacity of 540 million cubic feet per day and water injection capacity of 300,000 barrels per day.

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