ExxonMobil Guyana Ltd. has granted Saipem a $150 million Limited Notice to Proceed (LNTP) on engineering, procurement, construction, and installation (EPCI) of subsea structures, umbilicals, risers, and flowlines (SURF) on the Longtail project in the Stabroek block offshore Guyana.
The LNTP enables Saipem to begin preliminary detailed engineering and procurement activities at the project, in waters of about 1,750 m, while the main EPCI scope, including construction and installation, awaits ExxonMobil’s final investment decision following government and regulatory approvals, Saipem noted in a press release on 21 April.
ExxonMobil said it expects to sanction the project in 2026 after which ExxonMobil Guyana Ltd. and its co-venturers will complete the full $750 million to $1.5 billion project over an estimated 4-year period.
CNOOC and Chevron, through its 2025 acquisition of Hess, partner with ExxonMobil, the block’s operator.
ExxonMobil's Longtail Targets Longest-Life Guyana Project
Longtail is ExxonMobil’s eighth development project to date on the Stabroek block and is designed as the company’s longest‑life Guyana project, relying on extensive gas recycling to maximize condensate recovery, with gas monetization phased over time, according to ExxonMobil’s website.
ExxonMobil is targeting a 2030 startup with an expected plateau capacity of about 1 Bcf/D of gas and up to 250,000 B/D of condensate.
Saipem has completed four of the seven offshore development contracts it has in the block for ExxonMobil Guyana Ltd., including Liza Phase 1, Liza Phase 2, Payara, and Yellowtail.
ExxonMobil announced its discovery of Longtail-1 in 2018, confirming a significant hydrocarbon accumulation distinct from core oil developments. Milestones that followed included:
- 2021—Longtail‑3 appraisal identified additional high‑quality reservoirs, expanding the resource base and strengthening full‑field development potential.
- 2025—ExxonMobil formally positioned Longtail as its eighth Stabroek development and first predominantly nonassociated gas and condensate project, designed for a planned 30‑year operating life.
- March 2026—ExxonMobil Guyana awarded a front‑end engineering and design contract to SBM Offshore for a dedicated Longtail FPSO to process approximately 1.2 Bcf/D and storing approximately 2 million bbl of condensate.
- April 2026—ExxonMobil awarded a Limited Notice to Proceed to Saipem for preliminary engineering and procurement for the Longtail SURF system.