ExxonMobil Grants Saipem Authorization for $500M Guyana EPCI Contract

Exxon Mobil Corporation XOM, 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 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 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.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report TechnipFMC plc (FTI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks