$900M contract win lands on Saipem’s desk for Shell’s project in Nigeria

Saipem, in a consortium with two Nigerian companies, has secured an offshore contract worth around $1 billion with Shell for a deepwater oil and gas project off the coast of Nigeria.

As part of the contract with Shell Nigeria Exploration and Production Company Limited (SNEPCo), Saipem will deliver the engineering, procurement, construction and installation (EPCI) of risers, flowlines, subsea umbilicals, and associated subsea structures for the Bonga North Project, located 130 kilometers offshore Nigeria

Design and fabrication activities will be carried out locally, also involving Nigerian suppliers and subcontractors.

The contract was secured in a consortium with KOA Oil & Gas and AVEON Offshore and has an overall value of about $1 billion, while Saipem’s share amounts to approximately $900 million.

TechnipFMC will supply Subsea 2.0 production systems for the development, including the design and manufacture of subsea tree systems, manifolds, jumpers, controls, and services.

With water depths exceeding 1,000 meters, Bonga North will be tied back to the Shell-operated FPSO Bonga in OML 118, where production began in 2005. The FPSO, which can produce 225,000 barrels of oil per day, reached a production milestone in 2023 thanks to its one-billionth barrel of crude oil.

According to Shell, the project encompasses the drilling, completion, and start-up of 16 wells, of which half are production ones and the remaining half water injection wells, modifications to the existing FPSO Bonga Main, and the installation of new subsea hardware tied back to the unit for which Akselos provided a structural digital twin in 2020.

The FID for the project was announced earlier this week.