Saipem Grabs Gjoa Contract

Saipem UK has been awarded a contract for the installation of oil and gas export pipelines from the Gjoa field in the North Sea. StatoilHydro is the development operator for the field.

Saipem will lay a total of 185 kilometers of pipeline for the transport of oil and gas from the Gjoa and Vega fields.

The 28 inch gas pipeline will be around 130 kilmometers long, running from Gjoa to the UK Flags trunkline, which carries gas onwards to St Fergus in Scotland.

A 16 inch oil pipeline runs from Gjoa to the Troll II pipeline and will be 55 kilometers long.

Stabilised oil will be piped to the Troll II pipeline and onwards to the StatoilHydro-operated Mongstad refinery north of Bergen.

Saipem plans to mobilize the Castoro Sei pipe-laying vessel in April 2009 to lay the pipeline from Gjoa. With an average speed of around four kilometers per day, the work is set to take around two months.

The Gjoa field will be developed with a floating production platform. It will be tied back to the StatoilHydro-operated Vega and Vega South fields.

Gaz de France will take over as production operator with a 30% interest when the field is brought on stream. Other licensees are Petoro with 30%, StatoilHydro (20%), Shell (12%) and RWE Dea with 8%.

Proven in 1989, Gjoa lies in blocks 35/9 and 36/7. Reserves are gauged at 82 million barrels of oil and condensate and 40 billion cubic meters of gas. Total investments in the Gjoa development are estimated at NOK 27 billion in current money.