April 23, 2026 [Yahoo Finance]- Saipem has received a limited notice to proceed (LNTP) from ExxonMobil Guyana, valued at around $150m (€127.91m), pertaining to the Longtail project in Guyanese waters.

The notice enables the Italian contractor to begin early detailed engineering and procurement works for the project in the Stabroek Block.

Saipem’s engineering, procurement, construction and installation (EPCI) contract covers a subsea structures, umbilicals, risers and flowlines (SURF) system at a water depth of roughly 1,750m.

Further construction and installation activities will depend on securing necessary governmental and regulatory approvals and a final investment decision (FID) by ExxonMobil Guyana and its partners.

If the main EPCI scope proceeds, the entire contract is expected to run for approximately four years, with an estimated value of between $750m and $1.5bn.

Saipem is already established in the Stabroek Block, having previously delivered four projects – Liza Phase 1, Liza Phase 2, Payara and Yellowtail – for ExxonMobil Guyana.

The contractor has been involved in a total of seven offshore development agreements in the region to date. The Longtail discovery, announced in June 2018, marked ExxonMobil’s eighth oil find within the Stabroek Block.

The Longtail-1 exploration well was drilled to 18,057ft and identified roughly 256ft of oil-bearing sandstone in 6,365ft of water.

Last month, SBM Offshore received contracts from ExxonMobil Guyana to carry out front-end engineering and design (FEED) studies for a floating production, storage and offloading (FPSO) vessel that will be used in the Longtail project.

Awarding of the FEED contracts initiates ExxonMobil Guyana’s first disbursement of funding, enabling the start of FEED execution and the assignment of a Fast4Ward hull to support the Longtail development.

SBM Offshore will then proceed with the FPSO’s detailed construction and installation, contingent on receipt of required government approvals for the development plan. This step is also subject to ExxonMobil’s FID and formal authorisation to proceed with the project’s second phase of work.