Fresh batch of offshore contracts brings Saipem $650 million

Italian oilfield services provider Saipem has been awarded three new offshore engineering, procurement, construction and installation (EPCI) contracts and two front-end engineering design (FEED) competition deals, totalling approximately $650 million.

Saipem revealed the new contracts on Monday, 3 April 2023. The first contract, assigned by Azule Energy, is for the Agogo full field development project. This is a deepwater greenfield development, approximately 180 kilometres offshore Angola, about 20 kilometres west of the N’Goma FPSO (West Hub), which has been in operation since November 2014.

According to Saipem, the contract includes the engineering, procurement, construction and installation of rigid pipe-in-pipe flowlines with associated subsea structures and the firm will mobilise its FDS2 offshore installation vessel for this job.

Furthermore, the Italian player’s second contract, awarded by EnQuest, is for the decommissioning of existing infrastructures in the Heather oil field, located in the UK sector of the North Sea, around 460 kilometres northeast of Aberdeen. Saipem’s activities cover the engineering, preparation, removal and disposal of the upper jacket of the Heather platform, utilising the Saipem 7000 semi-submersible crane vessel.

Based on the Italian oilfield services provider’s statement, the third contract has been awarded under the Aramco LTA programme in Saudi Arabia, enabling the firm to execute the offshore EPCI of one platform topside and the associated subsea flexible, umbilical and cable system.

As Saipem has been awarded two front-end engineering design competition contracts for gas development projects, the first one, which was assigned by Shell Trinidad & Tobago, is related to the development of the Manatee natural gas field located in shallow water in Trinidad and Tobago.

On the other hand, the second contract, assigned to Saipem, in partnership with PT Tripatra Engineers and Constructors and Daewoo Engineering & Construction Co. Ltd., by PAPUA LNG Development Pte. Ltd., concerns the development of the upstream facilities to feed the natural gas PAPUA LNG project in Papua New Guinea.

“These important contracts further consolidate the positioning of Saipem both geographically and in key segments for the offshore business, in particular in decommissioning where the company boasts an important track record,” according to the Italian player.

In addition, Saipem claims that these awards leverage its combination of unique assets and expertise in competitive FEEDs that allow for “the presentation of effective offers and safe and innovative solutions.”

These new contracts come after Saipem secured a new deal in Ivory Coast worth $400 million for a recently chartered seventh-generation drillship.

The contract was awarded by the Joint Venture comprising Eni Côte d’Ivoire and Petroci.