Shawcor Receives Letter of Intent for Yellowtail Development Project in Guyana
06 April 2022 - 7:01AM
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.
About Shawcor
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.
For further information, please contact:
Meghan MacEachernExternal Communications &
ESG, DirectorTelephone: 437.341.1848Email:
meghan.maceachern@shawcor.com shawcor.com
Forward Looking Information
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.
Source: Shawcor Ltd.
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