Saipem secures $900 million Shell’s Bonga contract in Nigeria

Italian oil services giant Saipem, in partnership with KOA Oil & Gas and AVEON Offshore, has won a major offshore contract from Shell Nigeria Exploration and Production Company Limited (SNEPCo).

The project, part of the Bonga North development, is valued at approximately $900 million. It forms part of an overall contract worth about $1 billion.

The Bonga North Project involves the tieback of wells to the existing Floating Production, Storage, and Offloading (FPSO) vessel, Bonga. Saipem’s responsibilities include the Engineering, Procurement, Construction, and Installation (EPCI) of risers, flowlines, subsea umbilicals, and associated subsea structures.

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Saipem plans to conduct design and fabrication activities within Nigeria, engaging local suppliers and subcontractors.

The Bonga North development, located in Oil Mining Lease (OML) 118 at depths exceeding 1,000 meters, follows Shell’s final investment decision (FID) earlier this month.

The Bonga FPSO has been operational since 2005, with a production capacity of 225,000 barrels of oil per day. The field reached a milestone of producing its one-billionth barrel of crude oil in 2023.

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TechnipFMC, another major player in the project, has been contracted to supply its Subsea 2.0 production systems, including subsea tree systems, manifolds, jumpers, controls, and services. The TechnipFMC contract is worth up to $500 million.

The Bonga field is operated by SNEPCo (55%) in partnership with Esso Exploration and Production Nigeria (20%), Nigerian Agip Exploration (12.5%), and TotalEnergies Exploration and Production Nigeria (12.5%), under the Nigerian National Petroleum Company Limited (NNPC).

“This contract reinforces Saipem’s leadership in deepwater projects, particularly in West Africa, where we have been active since the 1960s,” the company said. Saipem emphasized its commitment to sustainability and the energy transition, leveraging innovative technologies to support clients’ pathways toward Net Zero.

Listed on the Milan Stock Exchange, Saipem operates in over 50 countries and employs approximately 30,000 people. Until 2016 it was a subsidiary of Italian oil and gas supermajor Eni, which retains approximately 30% of Saipem’s shares.

The company’s role in the Bonga North Project extends its backlog of activities, securing operations well into 2027.