Saipem wins Zohr gas field job

Italian oil and gas contractor, Saipem has been awarded a number of contracts in Egypt, including the field development project for the Zohr gas field, for a total amount of over €1.5 billion. 

The Zohr gas field was discovered by Eni in August 2015 and could hold a potential of 30 trillion cubic feet of lean gas in place (5.5 billion barrels of oil equivalent in place).

Under the engineering, procurement, construction and installation contract with Petrobel, a joint venture between Eni and Egyptian General Petroleum Corporation, Saipem will install a 26-inch gas export trunkline and 14-inch and 8-inch service trunklines.

Additionally, Saipem will do the EPCI work for the field development in deep water (up to 1700 metres) of 6 wells and the installation of the umbilical system, the company said in a statement on Thursday.

Work on the project will start during July and is due to be completed by the end of 2017.

In addition to the Zohr gas field project, Saipem said it has agreed to various changes in the scope of work on existing E&C Offshore contracts in other countries.

Eni has recently completed the first production test at the Zohr 2X well estimating the well’s production capacity at 250 mscfd or 46,000 barrel of oil equivalent.

The Zohr gas field has the potential to transform Egypt’s energy outlook. Due to decline in exploration and investment the country began importing liquefied natural gas last year to cover the demand for power generation.

However, recent discoveries and a total of 12 natural gas field developments underway with investment totaling US$33 billion Egypt could achieve self-sufficiency with regards to natural gas by 2022, at which point LNG imports into Egypt would stop.

The Egyptian Natural Gas Holding Company recently launched a tender to hire a third floating storage and regasification unit that would up Egypt’s LNG imports from 1.1 billion cubic feet per day, currently, to about 1.9 billion cubic feet per day.

LNG World News Staff