Shawcor Receives Letter of Intent for Yellowtail Development Project in Guyana
TORONTO, April 05, 2022 (GLOBE NEWSWIRE) — Shawcor Ltd. (“Shawcor” or the “Company”) (TSX: SCL) today announced that its pipe coating division has received a Letter of Intent (“LOI”) with Saipem for the Yellowtail development project, located in the Stabroek block offshore Guyana at a water depth of approximately 1,800 metres. The Company 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 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. “These awards follow our successful execution of multiple deepwater projects globally, demonstrating the strength of our coating performance and confirming our Customers’ confidence in Shawcor to deliver quality coating services.”
In aggregate, the above LOI and contract awards are valued at over C$50 million, with Yellowtail being the largest component.
Shawcor Ltd. is a growth-oriented, global material sciences company serving the Infrastructure, Energy, and Transportation markets. The Company operates through a network of fixed and mobile manufacturing and service facilities. Its three business segments, Composite Systems, Automotive & Industrial and Pipeline & Pipe Services enable responsible renewal and enhancement of critical infrastructure while lowering risk and environmental impact.
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Forward Looking Information
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Source: Shawcor Ltd.