Saipem lands Zohr EPCI contract

July 7, 2016

Italian offshore contractor Saipem has won an engineering, procurement, construction and installation (EPCI) contract on the supergiant Zohr gas field off Egypt.

The contract, won of a number won jointly worth more than US$1.6 billion Euros, will start this month, with the aim of completing by the end of next year.

The work scope covers the installation of a 26in gas export trunkline and 14in and 8in service trunklines, as well as EPCI work for the field development in deep water (up to 1700m) of six wells and the installation of the umbilical system. 

Zohr, described as Egypt's largest gas field to date, was discovered in August last year in the Shorouk concession, offshore Egypt, using Saipem's Saipem 1000 drillship. The field is due to be tied back 130km to the Temsah platform, operated by Petrobel. 

According to industry watcher Quest, phase 1 of Zohr’s field development program will initially begin with the start-up of 4-6 wells in Q4 2017, producing an estimated 700 MMscf/d to 1 Bscf/d by the end of 2017, and gradually ramp up, with the aim to produce 2.7 Bcf/d by 2020.

Saipem says its contract has been awarded by, Petrobel, a joint venture between Eni and EGPC (Egyptian General Petroleum Corporation), which is in charge of the development of Zohr on behalf of PetroShorouk, a joint venture between EGAS (Egyptian Natural Gas Holding Company) and Eni.

Saipem will mobilize a fleet of vessels to carry out offshore operations, consisting of the ultra-deepwater pipelayer Castorone, the semisubmersible pipelayer Castoro Sei, the trench/pipelay barge Castoro 10, and other specialized vessels.

“We are very pleased to have been selected for the important objective of delivering first gas from Zohr before the end of 2017”, commented Stefano Cao, Saipem CEO. “We will mobilize a fleet of vessels with last-generation capabilities, and leverage on our proven expertise and consolidated presence in the area, in order to ensure our clients achieve their targets.”

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