Latest update October 10th, 2026 7:56 PM
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Italian company secures contract for early works on Exxon’s 7th project yet to be approved
Kaieteur News- Italian multinational oilfield services company Saipem has secured new offshore contracts in Guyana and the Middle East worth approximately US$720 million.
The Stabroek Block.
In Guyana, Saipem has signed a Limited Notice To Proceed (LNTP) agreement with ExxonMobil Guyana Limited (EMGL) for engineering, procurement, construction, and installation (EPCI) works related to the proposed Hammerhead oil field development project, the seventh project in the prolific Stabroek Block.
Exxon’s application for the Hammerhead development is pending at the Environmental Protection Agency (EPA). That development has an estimated life of 30 years.
Notably, Saipem explained that while the agreement remains subject to regulatory and government approvals, the LNTP allows Saipem to begin early engineering and procurement activities. If the project is fully sanctioned, it is expected to start operations in 2029. The project will involve the installation of subsea structures, umbilicals, risers, and flowlines (SURF), along with a gas export system, all at a depth of approximately 1,000 meters.
Saipem noted that all logistics and support services for the Guyana-based operations will be managed locally through the Vreed-en-Hoop Shorebase Inc. (VEHSI) facility. The company noted that this will create employment and contribute to the development of Guyana’s local content capacity, the company said. The project is anticipated to last four years.
The second contract, awarded by a major client in the Middle East, involves EPCI activities for the repair of damaged subsea pipelines. With a duration of three years, this project highlights the growing significance of offshore field maintenance in Saipem’s operations. Saipem said it will utilize a range of vessels, including its flagship Saipem FDS2, to execute the offshore works.
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