Italian oil and gas industry contractor Saipem has secured a subsea contract for the proposed Payara development project in Stabroek block offshore Guyana.

The contract has been awarded by ExxonMobil subsidiary Esso Exploration and Production Guyana Limited (EEPGL).

The scope of the contract includes subsea structures, risers and flowlines for Payara, which will be located in approximately 2,000m of water.

Specifically, it will include approximately 130km of flowlines, rigid risers, and associated terminations and jumpers.

In 2017 and 2018, EEPGL awarded Saipem subsea contracts for the first two phases of the Liza development in Guyana.

Saipem noted that it will carry out detailed engineering, procurement, construction and installation (EPCI) of a large subsea production facility.

This will be performed only after receiving government approvals, project sanction and permission to move ahead with the final phase.

EEPGL and partners HESS Guyana Exploration and CNOOC Nexen Petroleum Guyana are responsible for the project sanction.

However, the new Payara contract award will enable Saipem to begin limited activities such as detailed engineering and procurement, even before the receipt of necessary approvals.

According to the company, the offshore operations will be performed by Saipem’s flagship vessels FDS2 and Constellation.

Saipem CEO Stefano Cao said: “The award of this new contract strengthens Saipem’s presence in Guyana. The long-term basis of our cooperation with our clients is at the very foundation of our business model.

“Working with ExxonMobil, especially on the continued oil & gas development projects in Guyana, represents both an opportunity and a responsibility to preserve our relationship with stakeholders through sustainable performance.

“Our relentless attention to safety, environment, innovation and cost efficiency are key to consolidate our position as one of the leading companies in the offshore subsea.”

Saipem also stated that it has won orders connected to ongoing engineering and construction (E&C) projects in Azerbaijan, Saudi Arabia and the North Sea.

The value of all the contracts together totals approximately $880m.