Milan — Italian energy services group Saipem (SPMI.MI) on Wednesday said it had won a new contract in Libya worth around $1 billion for the development of the Bouri Gas Utilisation Project (BGUP).
The contract was awarded by Mellitah Oil & Gas B.V. Libyan Branch, a consortium of the National Oil Corporation of Libya and Eni’s (ENI.MI) Eni North Africa.
Italian energy major Eni, which owns a 31% stake in Saipem, jointly controls both Saipem and Mellitah Oil & Gas B.V.. Saipem said in a statement the deal counted as a “related party transaction” based on Italian market regulation but was “completed in market-equivalent or standard terms”.
Saipem will revamp the platforms and facilities of the undersea Bouri gas field, engineering, constructing, installing and commissioning an approximately 5,000-ton gas recovery module, and also laying 28 kilometres of pipelines connecting platforms.
*Giulio Piovaccari; Editing: Kirsten Donovan – Reuters
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