Newswire summary of Guyana project Shawcor Says Received Letter of Intent for Yellowtail Development Project in Guyana
05:09 PM EDT, 04/05/2022 (MT Newswires) -- Shawcor Ltd. (SCL.TO) after trade Tuesday announced that its pipe coating division has received a Letter of Intent with Saipem for the Yellowtail development project, located in the Stabroek block offshore Guyana at a water depth of approximately 1,800 metres. SCL anticipates that it will receive a formal contract in the middle of 2022, subject to the necessary government authorizations. Project initiation is expected to begin in the first quarter of 2023 from Shawcor's Veracruz, Mexico facility.
In addition to the LOI with Saipem, Shawcor said it has received formal contract awards from other customers for two smaller projects located in the Gulf of Mexico. Shawcor will provide coating services for these projects which will commence in the second quarter of 2022 from the company's Veracruz facility.
"The performance of our coating solution on the Liza Phases 1&2 development projects and the more recent Payara development project in Guyana provides evidence that our coating technology is well suited to be deployed on the Yellowtail development project," said Kevin Reizer, Pipeline Performance Group President.
In aggregate, the above LOI and contract awards are valued at over C$50 million, with Yellowtail being the largest component, the company said.