Saipem has won offshore contract variations at Egypt’s Zohr field, the company said on July 27.
The service company said the work was worth US$900 million and covered engineering, procurement, construction and installation (EPCI) on the “optimised ramp up” phase of Zohr.
Work will start in July and is due to be completed by the end of 2018.
The service company won the contract from Petrobel, a joint venture between Eni’s IEOC subsidiary and Egyptian General Petroleum Corp. (EGPC). Petrobel is in charge of Zohr’s development, on behalf of PetroShorouk, which is a joint venture between IEOC and Egyptian Natural Gas Holding (EGAS).
Saipem said the work included the installation of a 30-inch (76-cm) diameter gas export pipeline and an eight-inch (20.3 cm) diameter service pipeline. EPCI work also covers the field development in up to 1700 metres of water for four wells and the installation of umbilicals.
Saipem will use its Castorone ultra-deepwater pipelayer, the Saipem FDS2 field development ship, the Subsea 3000 construction vessel and the Castoro 6 and Castoro 10.
Saipem’s CEO, Stefano Cao, said the company would use its “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”.
Eni, announcing its second quarter results last week, said the Zohr project was 80% finalised and was due to begin production in December of this year. The Italian company went on to note that capital expenditure was down 18% year on year, when taking into account advances paid by its partners on Zohr.
Zohr should reach full production of 500,000 boepd, it said. Eni has a 60% stake in the Egyptian gas field.