Saipem reinforces Guyana ties with $500 million job on ExxonMobil’s seventh oil project

September 26, 2025, by Melisa Cavcic

Italy’s engineering, drilling, and construction services giant Saipem has received the green light to move forward with its multimillion-dollar assignment on an offshore oil project in the Stabroek block off the coast of Guyana from ExxonMobil Guyana, a subsidiary of the U.S.-headquartered ExxonMobil.

Following ExxonMobil’s final investment decision (FID) for the $6.8 billion Hammerhead development as the seventh deepwater oil project in Guyana, Saipem has secured authorization to proceed with the execution of activities related to its engineering, procurement, construction and installation (EPCI) offshore contract, worth approximately $500 million, which it won for work on the Hammerhead oil field in the Stabroek block.

$6.8 billion project accelerates Guyana’s oil boom: ExxonMobil’s seventh development is a go

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This comes months after the Italian giant got the limited notice to proceed (LNTP) in April 2025, which enabled it to start some initial activities, such as detailed engineering and the procurement of long-lead equipment. With the necessary government and regulatory approvals, as well as of the final investment decision for the project out of the way, the firm will continue the execution of the contractual activities.

While disclosing that the offshore campaign is currently planned to begin during 2028, Saipem elaborates that its scope of work includes the engineering, procurement, construction and installation of subsea, umbilical, riser and flowline (SURF) structures for the production facility and the gas export system related to the Hammerhead oilfield development project about 200 kilometers from the Guyanese shore.

The company will carry out these operations using a variety of construction and support equipment, including Saipem FDS2 and Shen Da, which is part of its fleet as a chartered vessel. According to the firm, the logistics will be entirely executed and managed in Guyana through the Vreed-en-Hoop Shorebase (VEHSI) yard, generating employment and opportunities for the Guyanese people.

Located at a depth of approximately 1,000 meters, ExxonMobil’s seventh oil development in Guyanese waters will add between 120,000 and 180,000 barrels per day (bpd), raising the country’s overall production capacity to nearly 1.5 million bpd once it comes online in 2029.

The Hammerhead deal is said to strengthen Saipem’s presence in Guyana, as ExxonMobil also hired the firm to work on its six other development projects in the same region: Liza Phase 1 and Phase 2, Payara, Yellowtail, Uaru, and Whiptail.

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ExxonMobil is the operator and holds 45% interest in Guyana’s Stabroek block. The firm’s partners are Hess Guyana Exploration, now part of Chevron, has a 30% interest in the block, CNOOC Petroleum Guyana holds the remaining 25% stake.

The operator selected MODEC to develop an FPSO for its seventh project at the Stabroek block. This unit will be moored at a water depth of approximately 1,025 meters using a SOFEC spread mooring system in the eastern half of the block, around 160 kilometers northeast of the coastline of Georgetown.