Shawcor Announces Letter of Intent to Provide Pipe Coating Services for the Proposed Payara Project
TORONTO, Nov. 14, 2019 (GLOBE NEWSWIRE) — Shawcor Ltd. (TSX: SCL) today announced that its pipe coating division has entered into a detailed letter of intent with Saipem for the proposed Payara development project located in the Stabroek block offshore Guyana. The coating value of this phase is estimated to be similar to the individual phases of the Liza development that have already been awarded. As previously announced the combined coating value of Liza phase 1 and phase 2 was approximated at C$110 million.
Subject to government approvals, project sanction by ExxonMobil subsidiary Esso Exploration and Production Guyana Limited and its partners HESS Guyana Exploration Ltd and CNOOC Nexen Petroleum Guyana Ltd, an authorization to proceed with the final phase, and execution of the definitive coating agreement, Shawcor will provide thermal insulation and anticorrosion coating services from its Veracruz, Mexico facility.Before the necessary government approvals and project sanction, the definitive contract is expected to allow a limited release of funds to enable procurement activities.Saipem previously awarded Shawcor coating contracts for the first two phases of the Liza development in Guyana in 2017 and 2018, respectively. Coating work under the Liza 2 project is currently in progress at Shawcor’s Channelview, Texas and Veracruz, Mexico facilities and is expected to be completed during the first quarter of 2020.Shawcor Ltd. is a global energy services company specializing in products and services for the pipeline and pipe services segment of the oil and gas industry and related products for the petrochemical and industrial market. The Company operates through a global network of fixed and mobile manufacturing and service facilities and is valued for its integrity, technology and proven capability to execute the most complex projects in its industry.This news release contains forward-looking information within the meaning of applicable securities laws. Words such as “may”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “predict”, “estimate” or similar terminology are used to identify forward-looking information. This forward-looking information is based on assumptions, estimates and analysis made in the light of the Company’s experience and its perception of trends, current conditions and expected developments, as well as other factors that are believed by the Company to be reasonable and relevant in the circumstances. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those predicted, expressed or implied by the forward-looking information. The forward-looking information is provided as of the date of this news release and the Company does not assume any obligation to update or revise the forward-looking information to reflect new events or circumstances, except as required by law.For further information, please contactShawcor Ltd.
Senior Vice President, Finance and CFO