Saipem Secures Major Offshore Contract with Shell
Italian offshore engineering and construction giant Saipem has recently been awarded a significant contract by Shell’s Nigerian subsidiary for the Bonga North project. This project marks a crucial step in enhancing the operations of the Bonga Floating Production Storage and Offloading (FPSO) facility. The collaboration involves a consortium that includes KOA Oil & Gas and AVEON Offshore. With a total contract value of around $1 billion, Saipem’s share is approximately $900 million. This partnership underscores the growing importance of offshore oil and gas projects in Nigeria and the role of local suppliers in the industry.
Scope of Work and Local Involvement
Saipem’s responsibilities in the Bonga North project are extensive. The company will handle the engineering, procurement, construction, and installation of various critical components. These include risers, flowlines, subsea umbilicals, and associated subsea structures. The project focuses on the tieback of wells to the existing FPSO, which is essential for maintaining production levels. Saipem is committed to local engagement, as design and fabrication activities will be carried out in Nigeria. This approach not only supports the local economy but also fosters the development of local expertise in offshore engineering.
The involvement of Nigerian suppliers and subcontractors is a significant aspect of this project. By prioritizing local resources, Saipem aims to enhance the skills and capabilities of the Nigerian workforce. This strategy aligns with the broader goal of promoting sustainable development within the region. The collaboration with local entities also helps to streamline operations, reduce costs, and improve project timelines. As the Bonga North project progresses, it will serve as a model for future offshore projects in Nigeria and beyond, showcasing the benefits of local partnerships in the oil and gas sector.
MOL and Shell Sign Collaboration Agreement to Advance Decarbonisation in Maritime Sector
Project Goals and Future Production
The Bonga North project is designed to sustain and enhance operations at Shell’s Bonga FPSO. Recently approved by Shell, the project will involve drilling 16 new wells—eight for production and eight for water injection. This drilling campaign is crucial for maintaining the FPSO’s production capacity. Additionally, the project will upgrade subsea infrastructure to ensure efficient connectivity to the FPSO. With an expected production of over 300 million barrels of oil equivalent (boe), Bonga North aims for peak production of 110,000 barrels per day (bpd) by 2030.
The Bonga facility has been operational since 2005 and has a current capacity of 225,000 bpd. The successful execution of the Bonga North project will not only boost Shell’s production capabilities but also contribute significantly to Nigeria’s oil output. Furthermore, Shell has engaged TechnipFMC for the provision of subsea production systems, which includes the design and manufacture of subsea tree systems, manifolds, and controls. This collaboration highlights the importance of advanced technology and expertise in maximizing the potential of offshore oil fields. As the project unfolds, it will play a vital role in shaping the future of offshore oil production in Nigeria.
