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ExxonMobil Grants Saipem Authorization for $500M Guyana EPCI Contract
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Key Takeaways
ExxonMobil authorized Saipem to begin work on a $500M EPCI contract for Hammerhead offshore Guyana.
The deal covers subsea systems, umbilicals, risers, and flowline structures to support production.
Offshore activities are set for 2028, with logistics run from the VEHSI yard in Guyana.
Exxon Mobil Corporation (XOM - Free Report) , a U.S.-based energy major, has granted Saipem S.p.A., an Italian oilfield services provider, the authorization to start with the tasks associated with its engineering, procurement, construction and installation (EPCI) contract for the Hammerhead development offshore Guyana. XOM Guyana had awarded the EPCI contract to Saipem, which covers subsea systems, umbilicals, risers and flowline structures that should support the production units and gas export system at the Hammerhead development.
XOM has recently taken a final investment decision (FID) on the Hammerhead development, which is its seventh offshore development in Guyana. The Hammerhead field is located in the prolific Stabroek Block, at water depths of approximately 750-1,200 meters. The EPCI contract awarded to Saipem is valued at approximately $500 million.
In April 2025, Saipem received a Limited Notice To Proceed ("LNTP") from ExxonMobil Guyana. The LNTP required the energy services firm to begin with the initial activities related to the project, including detailed engineering and securing long-lead equipment. The project has secured all the necessary government and regulatory approvals, and XOM, along with its partners in the Satrbroek Block, has taken an FID on the project. As such, Saipem is slated to proceed with the execution of its contractual obligations. The offshore activities related to the project are scheduled to begin in 2028.
Saipem has stated that it will use a wide range of construction and support equipment to carry out its operations. This also includes the Saipem FDS2 and the Shen Da, a part of Saipem’s rig fleet. The logistical activities will be supervised and carried out at the Vreed-en-Hoop Shorebase Inc. (VEHSI) yard in Guyana.
ExxonMobil is the largest stakeholder and operator of the Stabroek Block offshore Guyana. Its other partners in Guyana are Chevron Corporation (CVX - Free Report) and CNOOC, holding 30% and 25% stakes, respectively. Chevron became XOM’s partner in the block following its acquisition of Hess Corporation.
Recently, Exxon Mobil has granted a substantial subsea contract to TechnipFMC plc (FTI - Free Report) for the engineering, construction and installation of subsea equipment with both production and water injection capabilities. The company will take over project management tasks for the development of the Hammerhead field in Guyana. The subsea systems will utilize components from TechnipFMC’s Subsea 2.0 platform, such as subsea trees, manifolds and control systems.
This agreement marks TechnipFMC’s seventh greenfield engagement with XOM Guyana since the project was authorized in 2017. The project not only expands FTI’s portfolio but also strengthens its long-standing relationship with the U.S. energy giant.
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ExxonMobil Grants Saipem Authorization for $500M Guyana EPCI Contract
Key Takeaways
Exxon Mobil Corporation (XOM - Free Report) , a U.S.-based energy major, has granted Saipem S.p.A., an Italian oilfield services provider, the authorization to start with the tasks associated with its engineering, procurement, construction and installation (EPCI) contract for the Hammerhead development offshore Guyana. XOM Guyana had awarded the EPCI contract to Saipem, which covers subsea systems, umbilicals, risers and flowline structures that should support the production units and gas export system at the Hammerhead development.
XOM has recently taken a final investment decision (FID) on the Hammerhead development, which is its seventh offshore development in Guyana. The Hammerhead field is located in the prolific Stabroek Block, at water depths of approximately 750-1,200 meters. The EPCI contract awarded to Saipem is valued at approximately $500 million.
In April 2025, Saipem received a Limited Notice To Proceed ("LNTP") from ExxonMobil Guyana. The LNTP required the energy services firm to begin with the initial activities related to the project, including detailed engineering and securing long-lead equipment. The project has secured all the necessary government and regulatory approvals, and XOM, along with its partners in the Satrbroek Block, has taken an FID on the project. As such, Saipem is slated to proceed with the execution of its contractual obligations. The offshore activities related to the project are scheduled to begin in 2028.
Saipem has stated that it will use a wide range of construction and support equipment to carry out its operations. This also includes the Saipem FDS2 and the Shen Da, a part of Saipem’s rig fleet. The logistical activities will be supervised and carried out at the Vreed-en-Hoop Shorebase Inc. (VEHSI) yard in Guyana.
ExxonMobil is the largest stakeholder and operator of the Stabroek Block offshore Guyana. Its other partners in Guyana are Chevron Corporation (CVX - Free Report) and CNOOC, holding 30% and 25% stakes, respectively. Chevron became XOM’s partner in the block following its acquisition of Hess Corporation.
Recently, Exxon Mobil has granted a substantial subsea contract to TechnipFMC plc (FTI - Free Report) for the engineering, construction and installation of subsea equipment with both production and water injection capabilities. The company will take over project management tasks for the development of the Hammerhead field in Guyana. The subsea systems will utilize components from TechnipFMC’s Subsea 2.0 platform, such as subsea trees, manifolds and control systems.
This agreement marks TechnipFMC’s seventh greenfield engagement with XOM Guyana since the project was authorized in 2017. The project not only expands FTI’s portfolio but also strengthens its long-standing relationship with the U.S. energy giant.