Italy’s Saipem has received a $1.7bn contract from Qatargas for the development of the North Field Production Sustainability Project.

Said to be the world’s biggest single non-associated natural gas field, the North Field is located offshore the north-east Qatar peninsula.

Qatar Petroleum owns the field. It is operated by Qatargas, a Qatar Petroleum subsidiary.

North Field Expansion Project is aimed at increasing Qatar’s LNG production capacity from 77 million tonnes per annum (Mtpa) to 110Mtpa.

Under the contract, Saipem will be responsible for the engineering, procurement, construction and installation of various offshore facilities for the extraction and transportation of natural gas.

These facilities include platforms, supporting and connecting structures, subsea cables, and anti-corrosion internally cladded pipelines.

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By GlobalData

The contract also includes the decommissioning of a pipeline and other significant modifications to existing offshore facilities.

Saipem plans to use the DE HE vessel to undertake pipe-laying and lifting operations in water depths of approximately 65m.

Additionally, Saipem secured a letter of intent from Qatargas for the contractual package for offshore export pipelines and related onshore works of the North Field Production Sustainability Pipelines Project.

Saipem E&C Offshore Division COO Stefano Porcari said: “Saipem is well-positioned and actively executing various contracts in Qatar, a key market for us with several offshore investments expected to progress in the near future.

“This acquisition by Qatargas consolidates our position in the gas sector, confirms our strategic role in the energy transition and represents a token of confidence in Saipem’s experience and proven ability to successfully execute and deliver challenging projects.

“Furthermore, it also confirms the relevance and effectiveness of the early engagement model adopted through our division XSIGHT, which recently concluded, ahead of time, the front-end engineering design contract for the whole NFPS development programme.”