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Be the first with the news that moves the market- Shawcor’s (SCL) pipe-coating division has been awarded a definitive contract by Italian oilfield services company, Saipem
- The company will provide thermal insulation and anti-corrosion coating services to ExxonMobil’s Payara development project, off the coast of Guyana
- The contract awarded to Shawcor is valued somewhere in the range of C$55 million to $65 million
- The company expects to begin work in 2020’s fourth quarter, from its facilities in Mexico and Texas
- Shawcor (SCL) is up 8.13 per cent and is currently trading at $2.26 per share
Shawcor’s (SCL) pipe-coating division has been awarded a definitive contract by Italian oilfield services company, Saipem.
Under the contract, Shawcor’s pipe-coating segment will provide thermal insulation and anti-corrosion coating services to the Payara development project. Payara is one ExxonMobil’s latest offshore oilfields, located in the Stabroek block off the coast of Guyana.
While first oil from Payara is not expected until 2024, estimates already indicate that the offshore oilfield has a resource base of around 600 million barrels of oil. The Prosperity floating production, storage, and offloading vessel will carry out the production, producing up to 220,000 gross barrels of oil per day.
Just today, ExxonMobil and its partner HESS Guyana Exploration made the final investment decision, allowing them to move forward with the Payara development. This decision came after the companies received approval for the project from Guyana’s government.
This is not the first time that Shawcor has worked with Saipem in the Stabroek block off Guyana’s coast. Saipem previously awarded the company with coating contracts for the first two phases of the Liza development there, in 2017 and 2018.
Liza Phase 1 entered production in late 2019, while Liza Phase 2 is unlikely to come online until early 2022.
This latest contract awarded to Shawcor’s pipe-coating division is valued somewhere in the range of C$55 million to $65 million. The company expects to begin work at its facilities in Veracruz, Mexico and Channelview, Texas in 2020’s fourth quarter.
Shawcor (SCL) is up 8.13 per cent and is trading at $2.26 per share at 12:13pm EDT.
