Italian energy services group Saipem has secured a contract worth around $1bn (€910m) for the development of the Bouri Gas Utilisation Project (BGUP) in Libya.
The contract has been awarded by Mellitah Oil & Gas B.V. Libyan Branch, a consortium of the National Oil Corporation of Libya and Eni North Africa.
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Italian energy major Eni owns a 31% stake in Saipem and also jointly controls both Saipem and Mellitah Oil & Gas B.V.
Saipem said the contract is considered as a “related party transaction” based on Italian market regulation. However, it was “completed in market-equivalent or standard terms”.
Under the contract, the company will be responsible for upgrading the platforms and the facilities related to the Bouri gas field offshore Libya.
The field is situated in water depths between 145m and 183m in the Mediterranean Sea.
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By GlobalDataThe scope of the contract includes the engineering, procurement, construction, installation and commissioning of an approximately 5,000-tonne gas recovery module onto the existing DP4 offshore facility.
Saipem will also lay 28km of pipelines to connect the DP3, DP4 and Sabratha platforms.
The company plans to undertake main lifting operations using the semi-submersible crane vessel Saipem 7000.
The company said in a statement: “With this award, Saipem confirms its commitment and competitive positioning offshore Libya. The completion of the project will make an important contribution to reducing CO₂ emissions in Libya.”
