A Review of the Nigerian Energy Industry

Total, Saipem tie up deal for offshore facilities in Nigeria

17 October 2011, Sweetcrude, Port Harcourt — French oil giant, Total has signed an agreement with Saipem on a contract for installation of new offshore facilities at the Ofon field, 50 kilometres off Nigeria’s south-east coast.

“Saipem will carry out the engineering, procurement, fabrication and installation of the OFP2 Jacket (comprising the 1970 tonne jacket structures and the 4500 tonne piles), as well as the transportation and installation of the complete new OFQ living quarter offshore platform,” Saipem said.

“The fabrication of the jacket will take place in the Saipem Rumuolumeni yard in Port Harcourt, Nigeria.

“Offshore activities will be performed mainly by Saipem 3000 vessel, in different phases during 2013.”

The contract is one of a number of deals totalling $1.5 billion which has seen Saipem land a whopping engineering, procurement, installation and construction (EPIC) contract off southern Iraq as well as contracts in the Norwegian and UK sectors of the North Sea.

The Iraqi deal is for Phase 2 of the Iraq Crude Oil Export Expansion Project off the Faw Peninsula off Basra.

That contract involves Saipem building a central metering and manifold platform at its yard in Karimun, Indonesia. The jacket will be built at its Taqa al-Rushid facility in Dammam, Saudi Arabia. Offshore activities will be carried out in the third and fourth quarter of 2013.

Saipem did not, however, put a value on the Iraq deal, writing only in Monday’s statement that it was one of a raft of deals totalling $1.5 billion.

Saipem has also scooped work in the Norwegian and UK sectors of the North Sea as well as in the Gulf of Mexico. These variously involve the installation of offshore platforms as well as some decommissioning work.

“Offshore activities will be performed in several phases commencing in the fourth quarter of 2011 through to late 2014,” Saipem wrote.

“Finally, Saipem has agreed to increases in the scopes of its work on a number of existing E&C Offshore contracts.”

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