Saipem bags $900 million thanks to new deals in Angola

Italian oilfield services giant Saipem has been awarded three new contracts in Angola, totalling around $900 million, which will enable it to work on Angola’s first non-associated gas project.

Saipem revealed on Thursday that it was awarded three new contracts – one onshore and two offshore – by the New Gas Consortium composed of two wholly owned subsidiaries of Azule Energy – a new 50/50 independent joint venture combining business interests of BP and Eni in Angola – Sonangol P&P, Chevron and TotalEnergies.

The Italian offshore drilling contractor explains that these three contracts have been awarded for the engineering, procurement and construction (EPC) activities relevant to the Quiluma and Maboqueiro (Q&M) fields development project off the northwest coast of Angola. The FID for this project was announced in July 2022.

This project includes two offshore wellhead platforms, an onshore gas processing plant and a connection to the Angola LNG plant for the marketing of condensates and gas via LNG cargoes. Moreover, the project execution activities are expected to start in 2022 while the first gas is planned for 2026. The project is anticipated to reach production of 330 mmscf/day at a plateau (approximately 4 billion cubic meters/year).

Saipem outlines that the new deals with an overall value of around $900 million will enable it to take care of the engineering, procurement and construction, including hook-up and commissioning assistance, of the Quiluma platform and of the relevant onshore natural gas processing plant.

“This confirms customers’ trust in Saipem for the execution of complex projects both in terms of technology and logistics, carried out in line with local content and with the highest environmental sustainability standards. In particular, this is the first project carried out in Angola relevant to a ‘non-associated gas’ field,” according to the Italian giant.

Saipem underlines that participation in this development in the Lower Congo Basin, which will provide the Angola LNG plant with additional gas volumes for both international and domestic markets, consolidates its “strategic positioning in West Africa and in Angola, where the company has been working for over 40 years.”

When it comes to Saipem’s latest activities elsewhere, it is worth noting that the Italian player secured an E&C contract earlier this month with EniMed, a subsidiary of Eni.

The deal covers the transportation and installation of an offshore gas pipeline connecting four wells of Argo and Cassiopea fields to the Sicilian coast.