The contracts were granted by Woodside in Australia, and Esso Exploration and Production in Guyana

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Saipem has secured $1.1bn offshore contracts in Australia and Guyana. (Credit: C Morrison from Pixabay)

Italian oilfield services company Saipem has secured two new offshore contracts, worth up to $1.1bn, for the Scarborough and Yellowtail projects, in Australia and Guyana.

The notice to proceed (NTP) with the Scarborough project was issued by the operator Woodside on behalf of the Scarborough joint venture (JV).

Under the first contract, Saipem will complete the export trunkline coating and install pipeline to connect the Scarborough gas field with the onshore plant.

Situated in the Carnarvon Basin, offshore Western Australia, the Scarborough gas field will be developed via new offshore facilities.

These facilities will be linked by around 430km export trunkline with a 36”/32” diameter to a second LNG train at the existing Pluto LNG onshore facility.

The first cargo is expected to be delivered in 2026.

Saipem will complete the coating, transportation and installation of the trunkline at a maximum water depth of 1,400m.

The company will also be responsible for the fabrication and installation of the line structures and of the pipeline end termination in 950m water depth.

Offshore operations, which will be primarily conducted by the Castorone vessel, are expected to be commenced in the middle of next year.

Woodside Energy Scarborough has 73.5% stake in the Scarborough JV, while the remaining 26.5% is owned by BHP Petroleum (Australia).

Saipe CEO and general manager Francesco Caio said: “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.”

Saipem has secured the second contract from ExxonMobil subsidiary Esso Exploration and Production Guyana (EEPGL) for the Yellowtail development project in the Stabroek block offshore Guyana at a water depth of up to 1,800m.

Subject to necessary government authorisations and investment approval, the contract enables to begin the initial engineering and procurement activities required to proceed as per the project programme.

Saipem will carry out the engineering, procurement, construction, and installation (EPCI) of the subsea umbilicals, risers and flowlines (SURF) for the Yellowtail project.

Saipem will use the FDS2 vessel to carry out the offshore operations. The deepwater structural elements will be constructed at the company’s fabrication facility in Guyana.