Saipem Nets $350MM Qatargas Work
Saipem (BIT: SPM) revealed Tuesday that Qatargas has confirmed the exercise of two options for additional work within the North Field Production Sustainability Offshore Project.
The additional scope of work is worth approximately $350 million and is related to the rerouting of hydrocarbons from an existing wellhead platform through new facilities, due to an existing pipeline being decommissioned, Saipem outlined. Activities under the options comprise the construction of two additional riser platforms, two additional connecting bridges with existing wellhead platforms, two corrosion resistant carbon steel cladded intra-field pipelines, and the decommissioning of an existing pipeline.
Works associated with the exercise of the options will be fully integrated with the project activities of two contract awards announced earlier this year; the North Field Production Sustainability Offshore Project, which was announced back in February, and the North Field Production Sustainability Pipeline Project, which was announced in March. Both projects are part of the strategic development of the North Field production plateau.
“This commercial achievement is a further proof of trust on Saipem by its key client, Qatargas,” Saipem said in a statement posted on its website on Tuesday.
“Saipem is already working actively on project engineering and site preparation activities and it’s looking forward to progress further, by leveraging its competences, assets and technology,” Saipem added in the statement.
In the 1980s, after 15 appraisal wells had been drilled over a period of 14 years, it was established that Qatar’s North Field was the largest non-associated natural gas field in the world, with recoverable reserves of more than 900 trillion standard cubic feet, Qatargas outlines on its website. The development of asset has been a significant factor in Qatar’s economic growth and the field will supply gas to fulfil multiple large-scale renewable gas sales contracts for many decades to come, according to Qatargas.
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