Source: ExxonMobil

Milan, Italy, April 21, 2026 — Saipem has secured a Letter of Notice to Proceed (LNTP) worth approximately USD 150 million from ExxonMobil Guyana Limited. The contract covers the engineering, procurement, construction and installation (EPCI) of subsea structures, umbilicals, risers and flowlines (SURF) systems for the Longtail Project in the Stabroek Block offshore Guyana, at a water depth of around 1,750 meters. This landmark new contract has once again sparked global attention to Guyana’s oil and gas boom, while raising a critical question worldwide: can this small South American nation truly seize this historic opportunity?

In less than six years, Guyana has undergone an incredible transformation. Evolving from an obscure impoverished country to a rising oil and gas powerhouse with a crude oil output exceeding 920,000 barrels per day, the nation has completely reshaped its destiny. This remarkable turnaround is driven primarily by seven approved offshore development projects within the Stabroek Block.

The saga began with ExxonMobil’s discovery of the Liza Oilfield in 2015, hailed as the world’s largest crude oil find in a decade. The breakthrough triggered widespread debate: will this surge in petroleum wealth deliver long-term prosperity, or bring hidden risks of the resource curse?

Spearheaded by ExxonMobil Guyana (holding a 45% operating interest and overall development oversight), all projects adopt a highly standardized “copy-paste” development model.

Saipem serves as the prime contractor for the EPCI of nearly all SURF pipeline facilities across the block.

Rigid Flowlines: Primarily configured with Steel Lazy Wave Risers, tailored for deepwater environments ranging from 1,500 to 2,100 meters. Fabricated from API 5L Grade X65 or X70 high-strength low-alloy steel (PSL 2 specification), manufactured via the Thermo-Mechanical Controlled Processing (TMCP) technique.

Steel Risers: Predominantly designed as Steel Lazy Wave Risers (SLWR) or Steel Catenary Risers, utilizing the same API 5L X65/X70 steel grades as flowlines, equipped with wet insulation and specialized protective coatings.

Saipem deploys J-lay vessels such as the FDS2 for rigid riser installation.

All pipeline materials are engineered to withstand extreme deepwater high-pressure conditions and corrosive media including hydrogen sulfide (H₂S) and carbon dioxide (CO₂), with supplementary corrosion resistance achieved through internal liners, advanced coatings and cathodic protection systems. The highly repetitive standardized design accelerates project delivery and optimizes cost control.

As a long-term key supplier of subsea equipment for the Stabroek Block, TechnipFMC has continuously delivered standardized Subsea 2.0® product solutions since the commencement of Liza Phase 1, underpinning the industry-leading execution efficiency of all developments.

Core Subsea Equipment Supply Scope

Subsea Trees: The critical foundational equipment, including Enhanced Vertical Deepwater Trees (EVDT) for production and injection wells, regulating hydrocarbon flow, pressure management, and water/chemical injection. Over 100 units have been delivered cumulatively, including 51 units for the Yellowtail Project, 44 for Uaru and 48 for Whiptail.

Manifolds: Production and injection manifolds to gather wellstream fluids and distribute media to subsea flowlines, with approximately 12 manifolds deployed for most individual projects.

Control & Auxiliary Systems: Integrated control modules, hydraulic and electrical flying leads, and umbilical connection interfaces.

Subsea Tie-in Equipment: Jumpers, connectors and auxiliary fittings to link subsea trees and manifolds to Saipem’s SURF pipeline network.

Discovered in 2015, first oil achieved in December 2019 with a designed capacity of 130,000 barrels of oil equivalent per day. The development comprises an FPSO, dozens of subsea wells and a 66-kilometer SURF flowline network. Key contractors: SBM Offshore (FPSO: Liza Destiny), Saipem (SURF EPCI), TechnipFMC (full subsea equipment supply). The project is fully completed and operating at full capacity.

First oil in February 2022, with a daily capacity of 260,000 barrels. The expansion features a second FPSO, extended well clusters and 113 kilometers of newly built SURF flowlines. Key contractors: SBM Offshore (FPSO: Liza Unity), Saipem (SURF works), TechnipFMC (subsea infrastructure). Currently fully commissioned and running at peak output.

Discovered in 2017, first oil delivered in 2023 with a daily capacity of 260,000 barrels, supported by a dedicated FPSO and customized subsea SURF systems. Key contractors: SBM Offshore (FPSO: Prosperity), Saipem and TechnipFMC as primary engineering and equipment vendors. The project has been completed and stabilized at full production.

Commissioned ahead of schedule in August 2025, with a daily output of 250,000 to 260,000 barrels. The development includes a mega FPSO, six drilling centers, 51 subsea wells and comprehensive SURF infrastructure. Key partners: SBM Offshore (FPSO: ONE GUYANA), Saipem (SURF EPCI), TechnipFMC (subsea hardware), EnerMech (pre-commissioning support). It is now operational and ramping toward full capacity.

Ongoing construction, scheduled for first oil in 2026 with a targeted daily capacity of 250,000 barrels. The project integrates a new FPSO, multiple drilling hubs and locally manufactured complex subsea structures within the SURF scope. Key contractors: MODEC (FPSO: Errea Wittu), Saipem, TechnipFMC and EnerMech. Construction progresses ahead of the original timeline.

Slated for first oil by the end of 2027, with a daily capacity of 250,000 barrels and a total investment of approximately USD 12.7 billion. The development includes a purpose-built FPSO, 10 drilling centers and 48 subsea production wells. Key vendors: SBM Offshore (FPSO: Jaguar), Saipem, TechnipFMC and EnerMech. Overall construction advances steadily as planned.

Guyana’s national crude oil production hit a record of 918,000 barrels per day in February 2026. With the successive commissioning of Uaru, Whiptail, Hammerhead and other upcoming developments, the country’s total oil throughput is set to surge to the million-barrel milestone.

As a specialized supplier of flanges, pipe fittings and comprehensive pipeline connection solutions, GM Piping is fully committed to delivering high-quality, high-pressure-resistant flanges and fittings that comply with API specifications and stringent international industry standards for world-class deepwater oil and gas projects.

We aspire to forge in-depth cooperation with key EPC contractors and project teams, including Saipem, TechnipFMC, SBM Offshore and MODEC, by leveraging our proprietary AI system BANGOU to provide one-stop integrated solutions. We aim to deliver reliable pipeline connection support for the continuous expansion of the Stabroek Block and jointly write the next glorious chapter of Guyana’s oil and gas success story.

The Longtail Project, focused primarily on natural gas and condensate, is advancing at an accelerated pace, targeting final investment approval before the end of 2026. It marks a pivotal strategic turning point for Guyana’s energy sector, transitioning from crude oil-dominated exploitation to a dual development model balancing crude oil, natural gas and condensate resources.