Saipem and Hyundai Win Construction Project Offshore Libya

Saipem has been awarded a production platform contract, offshore Western Libya, that will carry natural gas to Italy by means of a new underwater gasline crossing the Mediterranean Sea. The total value of the contract is estimated at Euro 620 million, of which Saipem's share is Euro 420 million. Following an international tender, the lump sum turnkey contract has been awarded to a consortium comprising Saipem SpA (leader) and Hyundai Heavy Industries.

The contractual scope of work for the large Production Platform includes: project management, engineering, procurement, fabrication, transportation & installation, hook-up & commissioning, start-up and six month of operational assistance. The contract is expected to be completed by July 2005 (including the period of operational assistance). Saipem's scope includes all project activities with the exception of the procurement of the bulk material and fabrication of the integrated deck that will be performed by Hyundai.

The platform will be installed during the first half of 2004 in 190 meters of water using the vessel Saipem 7000, that has just completed the laying of the Blue Stream pipelines across the Black Sea.