Saipem wins $900m deal for work on Shell’s Nigerian project

Italian offshore engineering and construction giant Saipem has been awarded a new offshore contract by Shell’s Nigerian arm for the Bonga North project.

Saipem will work on the project as part of a consortium with KOA Oil & Gas and AVEON Offshore.

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 of risers, flowlines, subsea umbilicals, and associated subsea structures.

Design and fabrication activities will be carried out locally, involving Nigerian suppliers and subcontractors. The overall value of the deal is around $1bn and Saipem’s share amounts to approximately $900m.

Shell has already hired offshore contracting giant TechnipFMC for the provision of subsea production systems for the project.

The contract with TechnipFMC covers the design and manufacture of subsea tree systems, manifolds, jumpers, controls, and services.

Shell recently approved the Bonga North deep-water project to sustain operations at its Bonga FPSO. The project will see the company drill 16 wells – eight production and eight water injection wells – and upgrade subsea infrastructure to connect to the FPSO.

Expected to produce over 300m boe, Bonga North targets peak production of 110,000 bpd by 2030. The Bonga facility began operations in 2005 and has a capacity of 225,000 bopd.