Saipem set to deliver major subsea system for Guyana’s largest oil project

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Italian multinational oilfield services company Saipem will begin initial engineering and procurement activities for ExxonMobil’s Yellowtail Development Project pending final approval from Guyanese authorities.

The contract, awarded by ExxonMobil Guyana, relates to the Engineering, Procurement, Construction, and Installation (EPCI) of the Subsea Umbilicals, Risers & Flowlines (SURF).

Yellowtail is intended to be a greenfield development project encompassing subsea drilling centres, (each equipped with separate oil production, water injection and gas injection wells), linked to a new Floating Production Storage and Offloading Unit (FPSO).

Hess says Yellowtail is one of the world’s best projects

Saipem’s flagship vessel FDS2 will conduct the offshore operations while Saipem’s fabrication facility in Guyana will build the deepwater structural elements.

The company said Tuesday it has also received the Notice to Proceed (NTP) from Woodside, as Operator for and on behalf of the Scarborough Joint Venture, for a contract related to the Scarborough project in Australia. Saipem will complete the export trunkline coating and installation of the pipeline that will connect the Scarborough gas field with the onshore plant.

“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 Francesco Caio, CEO and General Manager of Saipem.

He said the Scarborough project will be mainly conducted by the Castorone vessel, representative of the innovative and world-class offer which Saipem is able to provide the market.

“The recently opened Saipem fabrication facility in Georgetown [Guyana] will be involved in the execution of the Yellowtail project, ensuring a positive and tangible impact on the country,” Caio said.

The Yellowtail and Redtail fields will be developed with approximately 41 to 67 development wells drilled from six drill centers, each with separate production, gas re-injection, and water injection manifolds. According to the preliminary field layout for the Project facilities, this includes representative development wells, subsea umbilicals, risers and flowlines (SURF), and a spread moored FPSO. The vessel will be designed to accommodate an annual average capacity of 300,000 barrels per day (48,000 cubic meters per day [m3/d]) for total liquids production (250,000 barrels per day [40,000 m3/d] and 225,000 barrels per day [36,000 m3/d] of oil and water production, respectively), 300,000 barrels per day [48,000 m3/d] for water injection, and 450 million standard cubic feet per day (12.7 million standard cubic meters per day [MMsm3/d]) for gas processing.

Giant Yellowtail FPSO will produce up to 7.5 million barrels of oil per month during early stage of operations

The US$9 billion-dollar project is the largest to date for Guyana and will push total oil production to more than 800,000 barrels per day by 2026.


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