Saipem, a global leader in offshore engineering and construction, has secured a major contract from Shell Nigeria Exploration and Production Company (SNEPCo) for the development of the Bonga North deepwater oil field offshore Nigeria. The contract, valued at approximately $900 million, marks a significant milestone in Nigeria’s offshore oil and gas sector and reinforces Saipem’s strong presence in West Africa’s deepwater industry.
Scope of the Contract
Under the contract, Saipem will execute a comprehensive engineering, procurement, construction, and installation (EPCI) package covering critical offshore infrastructure. The scope includes:
- Subsea Umbilicals, Risers, and Flowlines (SURF) – The installation of vital subsea infrastructure that will connect new production wells to the existing Bonga Floating Production Storage and Offloading (FPSO) vessel.
- Deepwater Pipeline Installation – Deployment of pipelines to transport oil and gas from subsea wells to processing facilities.
- Subsea Production System Integration – Connection of newly installed subsea equipment to ensure seamless operation with the existing Bonga field infrastructure.
- Deployment of Offshore Construction Vessels – Use of specialized deepwater vessels, such as the Saipem 7000, to execute the complex offshore installation.
Saipem’s expertise in deepwater engineering and construction made it the preferred choice for this high-value project. The company will leverage its Nigerian fabrication yards and collaborate with local suppliers to maximize indigenous participation, in line with Nigeria’s local content regulations.
Significance of the Bonga North Project
The Bonga North project is a strategic expansion of the original Bonga field, Nigeria’s first deepwater development, which began production in 2005. The new phase aims to sustain and boost Nigeria’s offshore oil production, with estimated output increasing by 120,000 barrels per day upon completion.
Located in Oil Mining Lease (OML) 118, the Bonga North development is part of Shell’s broader efforts to enhance deepwater production efficiency and extend the life of the Bonga FPSO, a key asset in Nigeria’s offshore energy portfolio.
Saipem’s Competitive Edge and Commitment
Saipem has a strong track record in delivering deepwater oil and gas projects in Nigeria. The company previously worked on major offshore developments such as Egina, Akpo, and Erha, demonstrating its expertise in complex subsea installations.
Alessandro Puliti, CEO of Saipem, stated:
“This contract reaffirms our long-standing partnership with Shell and our commitment to supporting Nigeria’s deepwater oil and gas industry. We are proud to leverage our technical expertise and local capabilities to ensure the successful execution of this project.”
Local Content and Economic Impact
As part of Nigeria’s local content regulations, Saipem will engage Nigerian engineering firms, fabrication yards, and offshore service providers to execute key aspects of the project. The company’s commitment to local participation will:
- Create Jobs – The project is expected to generate hundreds of direct and indirect jobs in Nigeria’s oil and gas sector.
- Enhance Technical Skills – Saipem will offer training programs and knowledge transfer initiatives to develop local expertise in offshore engineering and construction.
- Boost the Nigerian Supply Chain – The use of locally sourced materials and services will support the growth of Nigeria’s oilfield services industry.
Project Execution Timeline
- 2025 – Engineering and procurement activities will commence immediately.
- 2026 – Offshore installation of subsea infrastructure will begin, with operations conducted using Saipem’s advanced offshore vessels.
- 2027 – Full-scale production from Bonga North is expected to ramp up, contributing significantly to Nigeria’s oil output.
Broader Industry Impact
The Bonga North project highlights the continued investment in Nigeria’s offshore sector despite global energy market uncertainties. The involvement of leading international contractors like Saipem and TechnipFMC (responsible for subsea production systems) demonstrates Nigeria’s strategic importance in global oil production.
Furthermore, the project supports Shell’s commitment to maximizing deepwater oil recovery while ensuring sustainability and environmental compliance.
Conclusion
The award of this major contract to Saipem represents a key milestone in the Bonga North development and reinforces Nigeria’s role as a major player in the global offshore oil and gas industry. As Saipem moves forward with engineering and installation, the project will drive economic growth, create employment, and enhance Nigeria’s offshore production capacity for years to come.
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