Saipem grabs contract award for Alen pipeline offshore E. Guinea

Equatorial Guinea’s Ministry of Mines and Hydrocarbons has approved a contract award to Italy’s Saipem from Noble Energy for a pipeline installation for Noble’s gas field located offshore Equatorial Guinea.

The ministry said on Thursday it had approved a 70-km pipeline that will link the Alen Unit, operated by Noble Energy, and the petrochemical complex of Punta Europa within the framework of Equatorial Guinea’s gas monetization project.

The $90-100 million contract has been awarded to Italian contractor Saipem. Gas has been re-injected into the field – extending the life of the Liquefied Natural Gas Train 1. First gas is expected to be delivered during the first quarter of 2021.

The Alen gas project is expected to monetize some 600 Bcfe gross recoverable gas resources from the Alen gas and condensate field. The field, located in Blocks O and I, has been producing condensate since 2013.

The Ministry of Mines and Hydrocarbons said it would strictly monitor the contract.

“We anticipate that this contract, which is being approved exceptionally under the given circumstances, will contribute immensely to improving the performance of local businesses and the creation of employment, as it is priority of the Ministry,” said Equatorial Guinea’s Minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima.

The final investment decision of the gas monetization project of the Alen-Backfilling unit was signed in Malabo in April. The “backfill” links producing gas fields in Equatorial Guinea to onshore LNG facilities.

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