Saipem secures major offshore contracts in Guyana and Brazil valued at $1.9bn

Saipem, a renowned player in the energy sector, has recently been awarded two significant offshore contracts totaling approximately $1.9 billion. This monumental achievement not only reinforces Saipem’s position in the oil and gas industry but also highlights its expanding global footprint.

ExxonMobil Guyana Contract Details

The first contract, awarded by ExxonMobil’s subsidiary, ExxonMobil Guyana Limited, is for the development of the Whiptail oilfield, located in the Stabroek block offshore Guyana. This contract, set in waters about 2,000 meters deep, involves Saipem’s expertise in the design, fabrication, and installation of subsea structures, risers, flowlines, and umbilicals for a significant subsea production facility.

Utilizing its state-of-the-art vessels like FDS2, Constellation, and Castorone, Saipem will conduct operations using its Guyana Offshore Construction Facility at the Port of Georgetown. This approach aims to enhance sustainable growth in Guyana. The contract’s initiation depends on government approvals, project sanction by ExxonMobil Guyana Limited, and authorization to proceed with the final phase.

Equinor Brazil Contract Highlights

Saipem’s second contract, awarded by Equinor, is for the Raia project in the Campos Basin, located approximately 200 km offshore Rio de Janeiro, Brazil. The project involves the development of a pre-salt gas and condensate field. Saipem’s scope covers the offshore transport and installation of a subsea gas export line and associated equipment in waters around 2,900 meters deep, along with horizontal drilling for shore approach. The company plans to deploy its pipelaying vessel, Castorone, for these installation works.

This project positions Saipem at the forefront of one of Brazil’s most critical gas development projects, potentially satisfying 15% of the country’s domestic demand. The gas extracted will be transported approximately 200 km to a receiving facility in Cabiúnas, Macaé, Rio de Janeiro.

Significance and Future Prospects

These contracts underscore Saipem’s competitive edge in bidding processes and its capacity to foster long-term partnerships based on consistent performance. They also enhance the visibility of Saipem’s key assets, with utilization expected through 2027.