Contracts of US$1.1 billion for Saipem

Saipem has been awarded two new offshore contracts in Australia and Guyana, for a total amount of US$1.1 billion.

Regarding the Australia contract, Saipem has received the Notice to Proceed (NTP) from Woodside, as Operator for and on behalf of the Scarborough Joint Venture, for a contract related to the Scarborough project. Saipem will complete the export trunkline coating and installation of the pipeline that will connect the Scarborough gas field with the onshore plant.

The Scarborough gas resource is located in the Carnarvon Basin, offshore Western Australia, and it will be developed through new offshore facilities connected by a 430km export trunkline with a 36”/32” diameter to a second LNG train (Pluto Train 2) at the existing Pluto LNG onshore facility.

The development will be among the lowest carbon intensity sources of LNG globally. The first cargo is expected to be delivered in 2026.

Francesco Caio, CEO of Saipem, said, “The award of these contracts represents a significant confirmation of the trust of our clients in Saipem’s ability to execute complex offshore projects worldwide.”

The second contract has been assigned to Saipem by Esso Exploration and Production Guyana Limited (EEPGL), a subsidiary of ExxonMobil, for the Yellowtail development project located in the Stabroek block offshore Guyana at a water depth of around 1,800m.

Pending the necessary government authorizations and investment approval, the assignment of the contract allows the start of initial engineering and procurement activities necessary to proceed in accordance with the project program.

The contract relates to the Engineering, Procurement, Construction, and Installation (EPCI) of the Subsea Umbilicals, Risers & Flowlines (SURF). Yellowtail is intended to be a greenfield development project encompassing subsea drilling centres, linked to a new FPSO (Floating Production Storage and Offloading Unit).

Saipem’s flagship vessel FDS2 will conduct the offshore operations while Saipem’s fabrication facility in Guyana will build the deepwater structural elements.