Table of Contents
The Italian company ExxonMobil has received a Limited Notice to Proceed (LNTP) from Saipem, intended to initiate work on the Longtail project in the Stabroek Block. This initial phase, valued at approximately $150 million, focuses on detailed engineering and procurement of supplies for the subsea infrastructure.
The scope and continuity of the Longtail project
The scale of this operation reflects the maturity of the Guyana basin. The scope of the contract covers the engineering, construction, and installation of SURF systems, including umbilicals and flowlines at depths reaching 1,750 m.
The importance of this agreement lies in its long-term financial potential. Once regulatory approvals are obtained and the Final Investment Decision is reached, the contract could scale to a value of between $750 million and $1.5 billion.
Likewise, the expected duration of the works extends over four years, ensuring considerable operational stability for the company’s construction fleet.
Furthermore, this is the eighth contract for Saipem in the area. The experience accumulated in the Stabroek Block enables more efficient and predictable infrastructure execution.
The integration of digital technologies and processes geared toward environmental sustainability will be important during the Longtail development, ensuring that the energy industry’s progress in the region meets global safety and efficiency standards.
Source and photo: Saipem