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Saipem wins US$1Bn deepwater subsea installation contracts
Saipem has won two subsea construction contracts for offshore oil and gas projects in Australia and Guyana with a combined value of US$1.1Bn
The Italian engineering and vessel-owning group received orders from Woodside’s Scarborough gas project off Western Australia and ExxonMobil’s Yellowtail deepwater oil development off Guyana.
Saipem has received a notice to proceed from Woodside on behalf of the Scarborough joint venture for its part in the huge deepwater gas project.
Under this arrangement, Saipem will complete the export trunkline coating and install the pipeline that will connect the Scarborough gas field, in the Carnarvon Basin, with the onshore plant.
This will be a 430-km export trunkline with a 36-inch outer diameter from the Scarborough offshore facilities to a new, second LNG train at the existing Pluto LNG onshore facility.
Saipem will be responsible for coating, transporting and installing the trunkline in water depths of 1,400 m. This contract includes fabricating and installing the line structures and pipeline end termination in 950 m of water.
Offshore operations are planned to begin in mid-2023 and will be mainly conducted by pipelay vessel Castorone.
This development will have among the lowest carbon intensity sources of LNG globally and is scheduled to come online with first cargo in 2026.
Woodside has a 73.5% stake in Scarborough and BHP Petroleum has the other 26.5%. The final investment decision was made by the Scarborough partners on 22 November 2021.
In Guyana, Saipem has been contracted by ExxonMobil subsidiary Esso Exploration and Production to support development of the Yellowtail oilfield in the prolific Stabroek offshore block.
This will begin with engineering and procurement activities necessary to proceed with the project programme, but is expected to result in a major subsea facilities installation campaign.
ExxonMobil’s Yellowtail consists of subsea wells and facilities linked to a new floating production storage and offloading (FPSO) unit. Saipem will be responsible for engineering, procurement, construction, and installing the subsea umbilicals, risers and flowlines in water depths of around 1,800 m.
This project is expected to have several subsea drilling centres, each equipped with separate oil production, water injection and gas injection wells. Flowlines, risers and umbilicals will connect these to the new FPSO.
Saipem’s fabrication facility in Georgetown, Guyana will build the deepwater structural elements and its flagship vessel FDS2 will conduct the offshore operations.
“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,” said Saipem chief executive and general manager Francesco Caio.
“The Scarborough project will be mainly conducted by the Castorone vessel, our versatile asset,” he said "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.”
It is anticipated that during offshore installation operations, Saipem will require fleets of supporting vessels including those for underwater survey, pipe logistics and subsea construction support.
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