Saipem, in partnership with two Nigerian companies, KOA Oil & Gas and AVEON Offshore, has secured an offshore contract valued at approximately $1 billion from Shell Nigeria Exploration and Production Company Limited (SNEPCo).
This collaboration marks a critical step forward in the Bonga North Project, a deepwater oil and gas initiative located 130 kilometers off the Nigerian coast.
In a statement released by Saipem on its website, the contract encompasses the Engineering, Procurement, Construction, and Installation (EPCI) of risers, flowlines, subsea umbilicals, and associated subsea structures.
Saipem’s share of the deal is estimated at $900 million, while the design and fabrication activities will integrate contributions from Nigerian suppliers and subcontractors, underscoring a commitment to local content development.
According to Saipem, “The project is related to the tieback of wells to the existing FPSO. Saipem’s scope of work encompasses the Engineering, Procurement, Construction and Installation (EPCI) of risers, flowlines, subsea umbilicals, and associated subsea structures.
“Design and fabrication activities will be carried out locally, also involving Nigerian suppliers and subcontractors,” the company stated.
Tinubu lauds Shell’s development of Nigeria’s first deepwater oil venture in over a decade
President Bola Tinubu, last week, welcomed the FID by Shell and its partners for the Bonga North Deep Offshore Field.
According to a statement by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, “the landmark development” marks Nigeria’s first deepwater oil venture in over a decade.
He attributed the development to the impact of the President’s policies and reforms in drawing investments to the oil and gas sector.
“The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people. We designed our policies and reforms from the start of my administration to achieve this goal. Shell and its partners’ decision to invest in Bonga North affirms the success of our efforts. We will continue to offer the necessary support to ensure their success and the realisation of Nigeria’s energy potential,” President Tinubu was quoted in the statement.
What you should know
The Bonga North Project will involve the drilling, completion, and start-up of 16 wells, comprising eight production wells and eight water injection wells.
- These operations will tie back to the Shell-operated Floating Production, Storage, and Offloading (FPSO) vessel Bonga in Oil Mining Lease (OML) 118.
- Notably, the Bonga FPSO achieved a historic milestone in 2023 by producing its one-billionth barrel of crude oil since operations began in 2005.
- The Bonga North project is expected to produce up to 110,000 barrels of oil per day at its peak.
Saipem is a global leader in the engineering and construction of major projects for the energy and infrastructure sectors, both offshore and onshore.
