Saipem to Start on final Phase of Guyana’s Payara Development
Saipem has recently received the authorization to proceed with the final phase of the Payara development project in Guyana from Esso Exploration and Production Guyana Limited (EEPGL), an ExxonMobil subsidiary. Saipem’s presence is therefore growing in this country where the company has been working for the last three years, starting with the award of the ground-breaking Liza phase 1 contract. This authorization allows for the finalization of the detailed engineering and procurement activities and the full execution of the contract scope.
The Payara field is located in the Stabroek block offshore Guyana at a water depth of around 2,000 meters. Saipem was awarded Engineering, Procurement, Construction and Installation (EPCI) of Subsea Flowlines, Umbilicals and Risers (SURF) in 2017 and 2018 respectively for Liza phases 1 and 2 offshore Guyana. The Payara development will connect 41 wells in total, including production, water injection and gas injection wells.
In November 2019 Saipem announced the contract award of the Payara subsea development project by EEPGL, subject to final investment decision (FID), for the detailed Engineering, Procurement, Construction and Installation (EPCI) of a large subsea production facility. In accordance with the contract, while awaiting project sanction, Saipem was authorized to start initial activities, namely detailed engineering and procurement of the long lead items. During this initial phase, Saipem’s engineers also delivered design optimizations, which are generating additional value to the project, despite the impacts and restrictions due to COVID-19 and challenging market conditions.
Saipem’s flagship vessels Saipem FDS2 and Saipem Constellation will perform the offshore installation while a soon-to-be completed construction yard in Guyana will take on the local fabrication of part of the subsea items.
The facility will feature a heavy load bearing jetty, the largest heavy lift crane in Guyana and specialized welding and testing equipment. All construction work for the new facility has been awarded to local Guyanese contractors. Furthermore, Saipem has started a recruitment campaign targeting local Guyanese for offshore works who will then be sent onboard the FDS2 for training and work. These initiatives, along with our logistic activities in Guyana and the opening of Saipem offices in the capital in 2019, are proof of our commitment to a country with ample perspectives as well as our constant efforts to deliver sustainable value to our stakeholders.
These landmark activities in Guyana, emphasized by leading-edge technologies and local content, will help set the industry standard for sustainable performance in frontier Oil and Gas regions.
Featured Title photograph
Saipem Constellation courtesy of Saipem
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