Saipem wins Zohr job worth over $1.2 billion

Italian offshore contractor Saipem and Petrobel have negotiated an offshore contract addendum worth more than $1.2 billion.

Saipem said on Thursday that the contract is for engineering, procurement, construction and installation (EPCI) activities in relation to the “Ramp Up to Plateau” phase of the “supergiant” Zohr field development project situated in the Mediterranean Sea off the Egyptian coast.

Petrobel is a 50-50 joint venture between EGPC (Egyptian General Petroleum Corporation) and IEOC (an Eni subsidiary in Egypt) 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, Rosneft, BP and Mubadala Petroleum.

The current addendum to the work includes the installation of a second 30-inch diameter gas export pipeline, infield clad lines, umbilicals and electrical/fiber optic cable, as well as EPCI work for the field development in deep water (up to 1700 meters) of 10 wells.

The Ramp Up to Plateau phase is scheduled to start in January 2019, in direct continuity with the Optimized Ramp Up phase which has been completed in a 17-month project execution period from its contract award.

To remind, Saipem and Petrobel in July 2017 finalized offshore contract variations worth $900 million for EPCI activities in relation to the “Optimized Ramp Up” phase of the giant Zohr development project. This scope of work included 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 of four wells and the installation of umbilicals.

Saipem to use a range of vessels

In this new phase of works, Saipem will deploy a range of highly specialized vessels including the Castorone, the latest generation of ultra-deep water pipelayer; the FDS, a subsea field development ship; the Heavy Lift Vessel S7000; the DP3 subsea construction vessel Normand Maximus; the subsea construction vessel Saipem 3000; the pipelay vessel Castoro Sei and the multipurpose Normand Cutter and Far Samson vessels.

Stefano Cao, Saipem CEO, said: “This further award of works on the Zohr development represents a new recognition of our proven capacity to embrace our client’s objectives at the early stages of cooperation and bring them to a conclusion. The innovative assets and technologies already used in the previous phases, and the ability to build solid local partnerships, will also ensure the success of this latest phase.”