-- Italian engineering and construction company, Saipem said Tuesday that it has received a limited notice to proceed valued at about $150 million from ExxonMobil (XOM) Guyana Limited for work on the Longtail development in the Stabroek Block offshore Guyana.
The award covers early engineering and procurement activities for the subsea structures, umbilicals, risers and flowlines system, to be installed in waters approximately 1,750 meters deep.
The LNTP enables Saipem to begin preliminary detailed engineering and procurement while the project awaits key approvals.
Full execution of the engineering, procurement, construction and installation contract, including construction and offshore installation, remains contingent on government and regulatory clearances, as well as a final investment decision by ExxonMobil Guyana and its Stabroek Block partners.
If sanctioned, the full contract is expected to run for around four years, with an estimated total value ranging from $750 million to $1.5 billion.
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