Under the contract, Saipem will design, fabricate, install and pre-commission the 13km subsea flowlines that will transport crude oil from Bonga to existing production, storage and offloading facilities.
The Bonga offshore project has a capacity of 200,000 barrels of crude and 150 million cubic feet of gas per day.
Shell operates the Bonga fields on behalf of the state-owned Nigerian National Petroleum Corporation, under a production sharing contract.
Shell Nigeria Exploration and Production, the local division that operates the Bonga fields, also has a joint operating agreement with Elf Petroleum Nigeria, Esso Exploration and Production Nigeria and Nigerian Agip Exploration, Bloomberg reported.
Bonga North-West is part of oil prospecting licence 212 awarded to Shell in 1993.