Friday, September 29, 2023

Pipe coating for Guyana’s largest offshore project planned for early 2023

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Canadian oilfield service company, Shawcor Ltd., has received a Letter of Intent (LOI) with Saipem to see pipe coating for ExxonMobil’s Yellowtail project in Guyana’s Stabroek Block, set to begin in early 2023. Yellowtail is scheduled for first oil in 2025/2026 with nameplate capacity of 250,000 barrels of oil per day.

Shawcor anticipates that a formal contract will be received by mid-2022 once all necessary government authorisations are in place. Shawcor said in a release that by the first quarter of 2023, the project will commence from the Company’s Veracruz facility in Mexico.

Shawcor’s Pipeline Performance Group President, Kevin Reizer highlighted that the performance of its coating solution on the Liza Phase 1, 2 and the Payara projects attests that its coating technology is “well suited” to be deployed for Yellowtail.

“These awards follow our successful execution of multiple deepwater projects globally, demonstrating the strength of our coating performance and confirming our Customers’ confidence in Shawcor to deliver quality coating services,” he added.

Shawcor announced too that in addition to the LOI with Saipem, it has received formal contract awards from other customers for two smaller projects located in the Gulf of Mexico.

It will also provide coating services for these projects which will commence in the second quarter of 2022 from the very Veracruz facility.

The LOI and contract awards are valued at over C$50 million, with Yellowtail being the largest component.

Shawcor touts itself as a leading energy and infrastructure technology company specializing in product, services and solutions utilized in oil and gas, water and wastewater, fuel, transportation and industrial applications.

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