Saipem Picks up $4 Billion in Kaombo FPSO Contracts

Saipem’s FIRENZE FPSO on Adriatic Sea, Italy, file image via wikipedia

Total’s final investment decision on Monday to develop Block 32 offshore Angola has resulted in extremely good news for Italian EPC firm Saipem. Their company has just been awarded USD $4 billion in contracts to supply and operate a pair of converted turret-moored Floating Production Storage and Offloading units (FPSO) for the Kaombo Field Development Project.

The contract includes the main EPCI (engineering, procurement, installation and commissioning) contract which is worth more than $3 billion, as well as a seven-year operation and maintenance contract of worth $1 billion.

The two converted FPSO units, owned by Total, will each have an oil treating capacity of 115,000 barrels per day, a water injection capacity of 200,000 barrels per day, a 100 million scfd gas compression capacity and a storage capacity of 1.7 million barrels of oil.

The scope of work of the contract includes engineering, procurement, conversion of the tankers, fabrication and integration of the topsides of the FPSO units and the installation of the mooring systems, as well as the hook-up, commissioning and operations start-up.

The Kaombo FPSO project will be managed by the Saipem Floaters Business Unit located in France. Part of the activities related to engineering, procurement, topsides modules fabrication and integration as well as commissioning onshore and offshore works will be carried out in Angola. The topsides fabrication activities will be undertaken in Saipem’s Karimun Island Yard, located in Indonesia. The tankers conversion and the topsides modules integration will be executed at an undisclosed shipyard in the Far East.

The first FPSO unit will be operational by the first quarter of 2017 and the second unit by the second quarter of the same year.

Commenting on the award, Umberto Vergine, Saipem CEO, 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.”