Saipem has won two new offshore contracts, in Australia and Guyana, worth $1.1 billion, on the Scarborough and Yellowtail projects respectively.
Saipem CEO Francesco Caio said the contracts represent a “significant confirmation of the trust of our clients in Saipem’s ability to execute complex offshore projects worldwide”.
In Australia, the company will provide pipeline work for Woodside Energy on the Scarborough project. Saipem will handle export trunkline coating and the installation of the pipe, which will run from the offshore Scarborough gas field to the onshore plant, Pluto Train 2.
Woodside has given Saipem notice to proceed (NTP), triggering this announcement.
Scarborough is in the Carnarvon Basin, offshore West Australia. The export trunkline will run for 430 km, with a 36”/32” diameter. The maximum water depth is 1,400 metres. Work covers the fabrication and installation of the line structures.
Offshore work will begin in mid-2023. Woodside is aiming to produce a first LNG cargo from Scarborough in 2026.
“The Scarborough project will be mainly conducted by the Castorone vessel, our versatile and state-of-the-art asset, representative of the innovative and world-class offer which Saipem is able to provide the market,” said CEO Caio.
Woodside took final investment decision on the $12 billion project in November 2021. Saipem said the development would be among the lowest carbon intensity sources of LNG in the world.
Woodside has a 73.5% stake in the project, while BHP Petroleum has the remaining 26.5%.
McDermott International won engineering, procurement, construction, installation and commissioning (EPCIC) services for a floating production unit (FPU) on Scarborough this week.
The second contract win is in Guyana. ExxonMobil’s local subsidiary, Esso Exploration and Production Guyana, has issued a contract to Saipem on the engineering, procurement, construction and installation (EPCI) of the subsea umbilicals, risers and flowlines (SURF).
Saipem will carry out this work on the Yellowtail development, in the Stabroek block. This is in around 1,800 metres of water.
The contract is reliant on government authorisation and investment approval.
Saipem will carry out work in Guyana via its FDS2 vessel. Its local fabrication facility will build the deepwater structures.
“The recently opened Saipem fabrication facility in Georgetown will be involved in the execution of the Yellowtail project, ensuring a positive and tangible impact on the country,” noted Caio.
Yellowtail is the 13th discovery on Stabroek. In November, Exxon selected SBM Offshore to provide a floating production, storage and offloading (FPSO) vessel for the project. Exxon expects first oil from the 250,000 barrel per day vessel in 2025.