Italian offshore energy services firm Saipem has received the authorization to proceed with the execution of activities related to the engineering, procurement, construction and installation (EPCI) contract for the development of ExxonMobil's Hammerhead oil field, offshore Guyana.
The contract with ExxonMobil Guyana, valued approximately $500 million, entails the EPCI work for subsea, umbilical, riser and flowline (SURF) structures for the production facility and the gas export system related to the Hammerhead oilfield development project located the Stabroek block, about 200 km from the Guyanese shore.
On April 2, 2025, Saipem received the Limited Notice to Proceed (LNTP), after which the company started some initial activities, namely detailed engineering and the procurement of long-lead equipment.
Following the receipt of the necessary government and regulatory approvals, as well as of the final investment decision by the client and its co-venturers of the Stabroek block made earlier in September, Saipem has received authorization to continue the execution of the contractual activities with the offshore campaign currently planned to begin during 2028.
Saipem said it will carry out the operations using a variety of construction and support equipment, including the Saipem FDS2 and the Shen Da, which is part of the Saipem fleet as a chartered vessel.
The logistics will be entirely executed and managed in Guyana through the Vreed-en-Hoop Shorebase Inc. (VEHSI) yard, generating employment and opportunities for the Guyanese people.
The $6.8 billion Hammerhead development will include 18 production and injection wells, and a floating production, storage and offloading (FPSO) with a capacity to produce approximately 150,000 barrels of oil per day.
ExxonMobil affiliate ExxonMobil Guyana is operator and holds 45% interest in the Stabroek block, with partners Hess Guyana Exploration with 30% and CNOOC Petroleum Guyana with 25% interests.
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