Shawcor is set to secure a pipe coating services contract from Saipem for the proposed Payara development project offshore Guyana.
In this regard, the Canadian oilfield services company has entered into a detailed letter of intent with Saipem.
The Payara development project is located in the Stabroek block at a water depth of approximately 2,000m.
ExxonMobil, through its affiliate Esso Exploration and Production Guyana (EEPGL), is the operator of the Stabroek Block with a 45% stake while Hess Guyana Exploration and CNOOC Petroleum Guyana holds 30% and 25% interests respectively.
Shawcor said that the coating value of the phase is expected to be similar to the individual phases of the Liza development that have already been awarded.
The total coating value of Liza phase 1 and phase 2 was estimated to be around C$110m ($83.24m).
The company will provide thermal insulation and anticorrosion coating services from its Veracruz, Mexico facility, upon executing a definitive coating agreement. The Payara development project is subject to government approvals and project sanction by ExxonMobil subsidiary and its partners.
Shawcor said that the definitive contract is likely to permit a limited release of funds to enable procurement activities.
Saipem had awarded Shawcor coating contracts for the first two phases of the Liza development
Earlier, Saipem had awarded Shawcor coating contracts for the first two phases of the Liza development in Guyana, in 2017 and in 2018 respectively.
Coating work under the Liza 2 project is presently in progress at Shawcor’s Channelview, Texas and Veracruz, Mexico facilities and is scheduled to be finished during the first quarter of next year.
The Liza Phase 2 development is designed to have a production of up to 220,000 barrels of oil per day through the $1.6bn Liza Unity Floating Production, Storage and Offloading vessel (FPSO).
Recently, Italian oil and gas contractor Saipem has secured the subsea contract from the EEPGL for the proposed Payara development project in November.
