Italy’s Saipem wins Scarborough JV contract

Woodside's Scarborough LNG project (Saipem)
Woodside's Scarborough LNG project

Italian energy services group Saipem has won two offshore contracts in Australia and Guyana for a total amount of $1.1 billion, according to Reuters.

One of Saipem’s contracts relates to the Scarborough gas field in the Carnarvon Basin, offshore Western Australia, for the export trunkline coating and installation of the pipeline that will connect the gas field with the onshore plant.

Related article: Woodside’s Scarborough project faces second Supreme Court challenge

The contract was awarded by Scarborough Joint Venture, of which Woodside Energy Scarborough Pty Ltd owns 73.5 per cent, with the remainder held by BHP Petroleum (Australia) Pty Ltd.

The second contract, signed with a subsidiary of Exxon Mobil Corp, is for the Yellowtail development project located in the Stabroek block offshore Guyana at a water depth of around 1,800m.

The Conservation Council of WA (CCWA) recently launched a second Supreme Court challenge relating to Woodside‘s Scarborough gas proposal as pressure continues to build around the controversial fossil fuel development.

The council will challenge a decision by the WA government to issue a Works Approval for the expansion of the Pluto LNG development on the Burrup Peninsula to allow processing of gas from the Scarborough field.

Related article: NSW govt approves $600m Kurri Kurri gas project

The challenge is the second to be launched in the Supreme Court of WA, following an earlier challenge which will be heard in mid-December.

The Scarborough development has been widely criticised by campaigners as one of Australia’s most polluting fossil fuel proposals, with estimates it will emit a total of 1.6 billion tonnes of CO2—the equivalent of 15 coal-fired power stations over its lifetime.