Saipem Lands Over £1.2bn In Offshore Contracts

Published at 08:13AM - 08/07/16

Drilling services provider Saipem has been awarded more than 1.5 billion euros (£1.2 billion) worth of new contracts and variation orders in E&C offshore, the company informed.

The largest deal related to the Field Development Project for the “supergiant” Zohr gas field, located in the Mediterranean Sea, offshore the Egyptian coast.

“We are very pleased to have been selected for the important objective of delivering first gas from Zohr before the end of 2017,” Saipem CEO Stefano Cao, said.

Saipem Lands Over £1.2bn in Offshore Contracts

The contracts have been awarded by Petrobel, a joint venture (JV) between Eni and EGPC (Egyptian General Petroleum Corporation) in charge of the Zohr development.

The agreement involves an Engineering, Procurement, Construction & Installation (EPCI) contract for the accelerated start-up of the Zohr development.

“The scope of work encompasses the installation of a 26-inch gas export trunkline and 14-inch and 8-inch service trunklines, as well as EPCI work for the field development of deep water (up to 1,700 metres) of 6 wells and the installation of the umbilical system,” the company informed in a statement.

Work is expected to start this month and is due to be completed by the end of 2017.

Saipem To Deploy Last-Generation Fleet

“We will mobilise a fleet of vessels with last-generation capabilities and leverage on our proven expertise and consolidated presence in the area, in order to ensure our clients achieve their targets,” Cao added.

The company explained it will use these offshore operations vessels to ensure the schedule is met.

Overall, the fleet consists on the ultra-deepwater last generation pipelayer Castorone, the semisubmersible pipelayer Castoro Sei, the trench/pipelay barge Castoro 10 and other specialised vessels.

The Zohr gas field was discovered by the Italian Eni in August 2015 using the Saipem 1000 drillship, which is still operating in the area.

Besides the contract involving the Zohr gas field, Saipem has agreed to various changes in the scope of work on existing E&C offshore contracts in other countries.