Full contract could reach US$1.5 billion as Guyana’s oil production pipeline continues to expand
ExxonMobil Guyana is moving ahead with development of its Longtail offshore project, with the award of a major subsea contract confirming forward momentum on one of the next wave of developments in the prolific Stabroek Block.
Italian energy contractor Saipem announced this week that it has been granted a Limited Notice to Proceed (LNTP) by ExxonMobil Guyana Limited for work on the Longtail project. The initial contract, valued at approximately US$150 million, covers the engineering, procurement, construction and installation of subsea systems, including structures, umbilicals, risers and flowlines. The project is located offshore Guyana at a water depth of roughly 1,750 metres.
The LNTP allows Saipem to begin preliminary detailed engineering and procurement activities while key regulatory approvals remain pending. The full execution phase of the project is still subject to those clearances as well as a final investment decision by ExxonMobil Guyana and its Stabroek Block partners. Once secured, the overall contract could expand significantly, with an estimated value ranging between US$750 million and US$1.5 billion and an expected duration of approximately four years.
Saipem is already a well-established presence in Guyana’s offshore sector, having worked on seven development projects within the Stabroek Block. Four of those — Liza Phase 1, Liza Phase 2, Payara and Yellowtail — have already been completed, contributing to the country’s rapid emergence as a global oil producer.
The Longtail project is among the next generation of developments expected to sustain production growth in the Stabroek Block, which remains one of the world’s most prolific offshore oil basins. With ExxonMobil officials signalling clear movement on the project, Longtail is positioned to become another significant contributor to Guyana’s oil output in the years ahead, pending final approvals and investment decisions.
