Saipem Snags $700MM Engineering Services Contract Onshore Nigeria


Saipem has been awarded a new lump sum turn key onshore contract in Nigeria worth approximately US $700 million.

The contract has been awarded by Total Exploration and Production Nigeria Limited (Operator of the NNPC/TEPNG Joint Venture) to a consortium comprising Saipem (Saipem's share is 60%), Ponticelli and Desicon for the OML 58 Upgrade Phase 1 Project. The OML 58 Block is located onshore Nigeria, approximately 85 kilometers North-West of Port Harcourt in Rivers state, and comprises a Flow Station and a Gas treatment train, with 10.65 MMSCMD gas and 35,000 boepd oil & condensate capacity.

The contract encompasses engineering, procurement, construction and commissioning for the revamping of the existing Flow Station and for increasing the overall safety of plant operation. A new gas treatment train and interconnecting pipelines and utilities to increase gas production to 15.65 MMSCMD will also be added, as well as implementing condensate stabilisation and upgrading water injection. An additional 2,50 MMSCMD capacity will be constructed to supply gas to the domestic market.

The project for Saipem represents a further milestone aimed to sustain and develop the Nigerian Content by enhancing local skills and capabilities in all the areas of the EPC chain.

The activities are scheduled to be completed for the first portion by early 2011 and fully by mid 2012.