Business
ExxonMobil Awards Saipem $150M Contract for Longtail Development
ExxonMobil Awards Saipem $150M Contract for Longtail Development
About this update from Saipem S.p.a.
Exxon Mobil Corporation XOM has awarded a limited notice to proceed (LNTP) contract to Saipem, an Italian engineering and construction services company, for the Longtail development in the Stabroek Block offshore Guyana. The scope of the contract covers engineering, procurement, construction and installation (EPCI) of subsea structures, umbilicals, risers and flowlines, also known as SURF system.The LNTP contract is valued at $150 million and will allow Saipem to carry out preliminary detailed engineering and procurement activities. The engineering and procurement of subsea structures and other equipment will be conducted at water depths of approximately 1,750 meters.The full EPCI contract is subject to government and regulatory approvals, along with a final investment decision on the offshore development. Saipem has stated that the full EPCI contract is expected to have a duration of about four years and may be valued between $750 million and $1.5 billion if the project is approved.The company has a long-standing relationship with ExxonMobil in Guyana. It has previously worked on other developments in the Stabroek Block, including Liza Phase 1, Liza Phase 2, Payara and the Yellowtail project.The Stabroek Block offshore Guyana is one of XOM’s key growth engines that contributes a major portion to its upstream production. The Longtail development is its eighth oil discovery in the Stabroek Block. The company stated that its Guyana reserves are among its most advantaged assets, containing almost 11 billion barrels of resource.XOM’s Zacks Rank and Other Key PicksXOM currently sports a Zacks Rank #1 (Strong Buy).Some other top-ranked stocks from the energy sector are Equinor ASA EQNR, Subsea7 S.A. SUBCY and Galp Energia SGPS SA GLPEY. While Equinor sports a Zacks Rank #1, Subsea7 and Galp Energia carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Equinor ASA is one of the leading integrated energy companies globally and a major supplier of natural gas in Europe. The recent conflict between the United States and Iran has resulted in a spike in gas prices and disrupted LNG supply, following damage to critical infrastructure in Qatar, tightening global LNG supply. This is expected to boost demand for Eqinor’s gas exports to Europe, positioning the company to benefit from heightened prices. The company’s expansion...