Saipem to get over $600 million from two fresh deals

Italian offshore contractor Saipem has been awarded two new offshore contracts for transportation and installation activities (T&I) for a total amount of over $600 million.

The first contract was awarded by Chevron for the Jansz-Io Compression Project, the gas field located around 200 kilometres offshore the north-western coast of Australia, at water depths of approximately 1,400 meters. Jansz-lo is part of the Chevron-operated Gorgon Project, a grouping of different fields and one of the world’s largest natural gas developments.

As detailed by Saipem, offshore operations are planned to start in 2024 and they will be conducted by the Constellation vessel.

Chevron sanctioned the $4 billion worth Jansz-Io Compression project in early July 2021 and, earlier this month, Norway’s Aker Solutions secured a contract to provide the engineering, design and manufacturing of a total of about 70 kilometres of dynamic subsea umbilical for the project.

The second contract awarded to Saipem is related to Turkey’s Sakarya gas field development project, the first deepwater natural gas field discovered in Turkey in the Black Sea, about 175 km offshore the coast of Eregli. The contract entails the transportation and installation of pipelines to a 2,200-meter water depth. The offshore operations are to begin in spring 2022 and will be conducted mainly by the Castorone vessel.

In related news, the consortium of Subsea 7 and Schlumberger in October 2021 won an engineering, procurement, construction, and installation contract by Turkish Petroleum for the subsea equipment for the Sakarya development.

Francesco Caio, CEO and General Manager of Saipem, commented: “The award of these two important contracts highlights our solid expertise in subsea installation and our world-class assets as well as being a tangible sign of recovery of the offshore market. These new contracts in the gas sector, a fundamental element of the energy transition, provide solid indications of the improvement in demand and testify to Saipem’s capability of offering solutions in line with its clients’ needs.”