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Total increases Technip’s $100m contract for Egina field

By on July 29, 2013

Total Upstream Nigeria, a joint venture partner of the Nigeria National Petroleum Corporation, has awarded more contracts to Technip, a French company,  in a string of contract awards for the development of the $15bn Egina deep-water field off Nigeria.

Technip had, earlier in the month, landed a contract worth $100m to supply umbilicals to Total’s deep-water Egina oil field which lies about 150 kilometres off the coast of Nigeria within OML 130 in a water depth of up to 1750 metres.

A report on upstreamonline.com on Friday confirmed that Techniphad landed another contract on the Egina field, and would supply 12 dynamic flexible jumpers for oil production, gas lift, water injection and gas export, to connect the single top tension risers to the floating production storage and offloading unit at the field.

The company is also expected to supply two 20.5-inch unbonded flexible pipes as oil offloading lines connecting the FPSO to the offloading buoy, as well as associated ancillary equipment.

Though Technip did not reveal the contract value, it said it was substantial.

Experts, however, said the company deemed a substantial subsea contract as any deal ranging between €100m and €250m ($132.8m and $332m).

“Technip’s Flexi France facility in Le Trait, France, will manufacture the flexible pipes which are scheduled to be delivered in 2015 for the jumpers and 2016 for the oil offloading lines,” the report said.

Similarly, Total had earlier awarded $4.2bn contracts to Saipem and FMC Technologies for the development of the Egina deep-water field.

A $3bn contract was awarded to Saipem for engineering and construction work on subsea facilities for the development of the Egina field while FMC Technologies landed a $1.2bn subsea equipment order.

Siapem, a subsidiary of Italian oil giant, Eni, which confirmed the $3bn award, said it would carry out engineering, procurement, fabrication, installation and pre-commissioning of 52 kilometres of oil production and water injection flow lines under the deal.

It said it would also deliver 12 flexible jumpers, 20 kilometres of export pipelines and 80 kilometres of umbilicals, as well as mooring and offloading systems, with installation work to be carried in 2016 and 2017.

The firm said most of the fabrication work would be carried out at the Saipem Rumoulumeni yard in Port Harcourt in line with Nigeria’s local content requirements.

The company said, “The fabrication activities will be almost entirely performed in Nigeria and most of them in the Saipem Rumoulumeni Yard in Port Harcourt, further improving the already high level of local content reached for the Usan Field Development Project, which has been carried out by Saipem for the same client.

“This very large contract confirms the leading role of Saipem in the deep water activities and in Nigeria where Saipem is present since the late 1960s and has been involved in all country’s major developments as one of the few international contractors able to operate, maximising the local content, ensuring business sustainability and, therefore, fulfilling the country requirements.”

In the same vein, FMC Technologies, which landed a $1.2bn subsea equipment order from Total, said the contract work scope covered the supply of subsea trees and wellheads, manifolds, installation tooling, flow line connection systems and associated control systems, with deliveries due to start in 2015.

The FMC’s Senior Vice-President, Subsea Technologies, Mr.  Tore Halvorsen, said Egina would be “the largest subsea project to date in West Africa.”

The contractor said it had expanded its facilities in Lagos and Onne to handle delivery of the equipment as part of its strategy to meet Nigerian Local Content requirements.

 

[Punch]