Saipem has identified its subsea contract for ExxonMobil Guyana’s Longtail development as one of its largest contract awards during the second quarter of 2026, according to the company’s first-half results released on July 27.
The award was listed alongside other major offshore contracts secured by Saipem during the quarter, including projects in Angola and Saudi Arabia.
The Longtail contract covers the engineering, procurement, construction and installation (EPCI) of the project’s subsea structures, umbilicals, risers and flowlines (SURF) system in the Stabroek Block offshore Guyana. The work will take place at a water depth of approximately 1,750 meters.
Saipem received a limited notice to proceed (LNTP) for the project in April, allowing the company to begin detailed engineering and procurement activities ahead of a final investment decision (FID). The preliminary award was valued at about US$150 million, while the full contract, yet to be awarded, could reach between US$750 million and US$1.5 billion once the project receives final approval.
Longtail is expected to become Guyana’s first offshore development focused on non-associated natural gas rather than oil. The project is designed to produce up to 1.2 billion cubic feet of gas per day and approximately 250,000 barrels of condensate per day, with first production targeted for 2030, subject to approvals.
The development is expected to use a floating production, storage, and offloading vessel built by SBM Offshore.
Saipem has operated in the Stabroek Block for ExxonMobil under seven offshore development contracts, four of which have already been completed, namely Liza 1, Liza 2, Payara, and Yellowtail.
Currently, ExxonMobil produces oil at more than 900,000 barrels per day in Guyana.
