Italian oil and gas industry contractor Saipem has secured contracts for a combined total of more than $4bn in Angola from French oil firm Total.
Said to be worth more than $3bn, the main EPCI contract is for the engineering, procurement, installation and commissioning of two converted turret-moored floating production storage and offloading units (FPSO) for the Kaombo field development project, located in block 32, offshore Angola.
Total has also awarded a seven-year contract of approximately $1bn to Saipem for operation and maintenance services of the two units, each of which have an oil treating capacity of 115,000bpd.
The units also have a water injection capacity of 200,000bpd, a 100 million standard cubic foot per day gas compression capacity and a storage capacity of 1.7 million barrels of oil.
Taking responsibility for the hook-up, commissioning and operations start-up, the company will also provide seven years of operation and maintenance services for the two vessels, expected to be operational by the first quarter and second quarter of 2017, respectively.
The Saipem Floaters Business Unit located in France will manage the Kaombo FPSO project.
A portion of the activities related to engineering, procurement, topsides modules fabrication and integration, and onshore and offshore commissioning works will be carried out in Angola.
Saipem’s Karimun Island Yard in Indonesia will look after the topsides fabrication activities, while the tankers conversion and the topsides modules integration will be executed at a shipyard in the Far East.
Saipem CEO Umberto Vergine said: "This contract is in line with Saipem’s strategy of pursuing growth opportunities in high-complexity Floaters and FLNG construction in specific geographic areas, such as Asia Pacific and Africa, where the company can leverage its engineering capabilities, strong local content competencies and unique availability of fabrication yards."