Saipem Scoops Extra Work at Zohr
Italian engineering contractor Saipem said July 27 it has finalised offshore contract variations worth an extra $900mn at Egypt's giant Zohr gas field.
The contract, awarded by Eni-state EGPC joint venture operator Petrobel, relates to engineering, procurement, construction and installation (EPCI) activities in relation to the 'optimised ramp up' phase of the “supergiant” development project situated off Egypt's Mediterranean coast.
Current variations to the scope of work include installation of a 30-inch gas export pipeline and an 8-inch diameter service pipeline, as well as EPCI work for the field development in deep water (up to 1.7km) of four wells and the installation of umbilicals. Works start July 2017 for completion by end-2018.
“We are pleased that our activities in the development of the Zohr field are in line with the challenging schedule set by the client,” said Saipem CEO Stefano Cao. The firm will deploy several of its specialised vessels, including its latest generation ultra-deep water pipelayer Castorone; subsea field development ship Saipem FDS2; a subsea construction vessel Saipem 3000, and pipelayer Castoro 6 and trenching barge Castoro 10.
Zohr is expected initially to produce 1bn ft3/d by the end of this year, rising in phases to some 2.8bn ft3/d around the end of 2019, according to Eni.
Eni agreed late 2016 to farm out up to 50% of Zohr to Rosneft and BP; each has options to increase their respective agreed 30% and 10% holdings.
Saipem's original contract with Eni at Zohr was awarded in July 2016 and worth over €1.5bn.
Mark Smedley