Saipem nets $1.7 billion offshore contract from Qatargas

Italian contractor Saipem has secured a contract from Qatargas worth about $1.7 billion and related to the giant Qatari LNG expansion project.

Saipem said on Monday it received a letter of award from Qatar Petroleum’s unit for the development of the North Field production sustainability offshore project, located off the North-East cost of Qatar peninsula.

The scope of work encompasses the engineering, procurement, construction and installation of various offshore facilities for the extraction and transportation of natural gas, the firm said.

These include platforms, supporting and connecting structures, subsea cables but also anticorrosion internally cladded pipelines.

Furthermore, the project encompasses the decommissioning of a pipeline and other significant modifications to existing offshore facilities, Saipem said.

The Italian firm said it would execute pipe-laying and lifting operations with the DE HE vessel in water depths of about 65 meters, leveraging on the company’s “high-end welding technology for corrosion resistant cladded pipelines to meet client’s stringent quality requirements.”

Saipem is already executing the WHP12N Jacket project, awarded in July 2020, which is part of the North Field production sustainability offshore development.

Another contract in the pipeline

In addition to this new contract and part of the offshore development, Saipem said it has received from Qatargas a letter of intent for the contractual package regarding offshore export pipelines and related onshore works.

“The award of this additional package is subject to the definition of contractual details and the client’s final approval,” Saipem said.

The new award is part of the Qatari LNG expansion project that includes building four “mega trains” with a capacity of 8 million tonnes per year in the Ras Laffan complex.

Furthermore, this first phase of the North Field East project will increase Qatar’s LNG production capacity from 77 to 110 mtpa.

To remind, Qatar Petroleum recently awarded the onshore engineering, procurement and construction contract to a joint venture consisting of Chiyoda and Technip.

The total cost of the North Field East project will reach $28.75 billion, according to QP.

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