Saipem secures $150m contract for Longtail project in Guyana [Yahoo! Finance]
Exxon Mobil Corporation (XOM)
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Source: Yahoo! Finance
The notice enables the Italian contractor to begin early detailed engineering and procurement works for the project in the Stabroek Block. Saipem's engineering, procurement, construction and installation (EPCI) contract covers a subsea structures, umbilicals, risers and flowlines (SURF) system at a water depth of roughly 1,750m. Further construction and installation activities will depend on securing necessary governmental and regulatory approvals and a final investment decision (FID) by ExxonMobil Guyana and its partners. If the main EPCI scope proceeds, the entire contract is expected to run for approximately four years, with an estimated value of between $750m and $1.5bn. Saipem is already established in the Stabroek Block, having previously delivered four projects – Liza Phase 1, Liza Phase 2, Payara and Yellowtail – for ExxonMobil Guyana. The contractor has been involved in a total of seven offshore development agreements in the region to date. The Longtail discovery,
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