Saipem Lands $900M Zohr Deal
- Business & Finance
Saipem and Petrobel have finalized offshore contract variations worth $900 million for engineering, procurement, construction and installation (EPCI) activities in relation to the “Optimised Ramp Up” phase of the Zohr field development project situated in the Mediterranean Sea off the Egyptian coast.
Petrobel is a joint venture between IEOC (an Eni subsidiary in Egypt) and EGPC (Egyptian General Petroleum Corporation) and is in charge of the development of Zohr on behalf of PetroShorouk, a joint venture between EGAS (Egyptian Natural Gas Holding Company) and IEOC.
The current variations to the scope of work include the installation of a 30-inch diameter gas export pipeline and an 8-inch diameter service pipeline, as well as EPCI work for the field development in deep water (up to 1700 metres) of 4 wells and the installation of umbilicals. Works will this month and are due to be completed by the end of 2018.
Saipem will deploy several vessels from its fleet, including the Castorone (the latest generation ultra-deep water pipelayer); the subsea field development ship Saipem FDS2; the Saipem 3000 (a subsea construction vessel) and, finally, the Castoro 6 and the trenching barge Castoro 10.
“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 Stefano Cao, Saipem CEO. “In the execution of this further phase of the development, we will deploy our most technologically advanced vessels and leverage our proven abilities and skills so that the achievement of the client’s requirements is ensured. This acquisition confirms and consolidates our presence in the Eastern Mediterranean Sea and is yet another milestone for Saipem in the SURF (subsea, umbilicals, risers, flowlines) segment of Offshore E&C projects”.