Oilfield Services Giant Saipem Secures $900 Million Contract for Deepwater Project in Nigeria
Saipem, a leading oilfield services company, has recently been awarded a substantial $900 million contract for a deepwater oil and gas project off the coast of Nigeria.
The contract, signed with Shell Nigeria Exploration and Production Company Limited (SNEPCo), involves the Engineering, Procurement, Construction and Installation (EPCI) of risers, flowlines, subsea umbilicals, and related subsea structures for the Bonga North Project. Situated 130 kilometers offshore Nigeria, this project marks a significant milestone in the country’s oil and gas sector.
Working in collaboration with two indigenous companies, KOA Oil & Gas and AVEON Offshore, Saipem will oversee the design and fabrication processes locally. Nigerian suppliers and subcontractors will also be actively involved in the project, further boosting the local economy and creating job opportunities within the region.
The Bonga North Project, with water depths exceeding 1,000 meters, will be connected to the FPSO Bonga, operated by Shell. The FPSO has a production capacity of 225,000 barrels of oil per day and achieved a remarkable feat in 2023 by reaching its one-billionth barrel of crude oil.
Shell has outlined the scope of the project, which includes drilling, completing, and starting up 16 wells, with a focus on both production and water injection. Additionally, modifications will be made to the existing FPSO Bonga Main, and new subsea hardware will be installed to enhance the unit’s capabilities. Akselos, a structural digital twin provider, has been involved in the project since 2020.
Shell’s investment in the Bonga North project is expected to generate a significant Internal Rate of Return (IRR) and contribute to the company’s upstream operations for years to come. The peak production of the project is estimated to reach 110,000 barrels of oil per day, with initial oil production projected by the end of the decade.
Overall, the Bonga North Project represents a major step forward in Nigeria’s oil and gas industry, showcasing the country’s potential for growth and development in the energy sector.
