Business
Saipem Secures New Offshore Contract for the Greater PAJ Development
Saipem Secures New Offshore Contract for the Greater PAJ Development
About this update from Saipem S.p.a.
Saipem S.p.A SAPMF, an Italy-based energy services firm, has secured a major offshore contract worth about $1 billion from Azule Energy, a 50-50 joint venture formed by Eni and BP, for the Greater PAJ development off the coast of Angola. The Greater PAJ development comprises Blocks 31 and 31/21 offshore Angola and is a major ultra-deepwater project being developed in sub-Saharan Africa.Apart from being a significant ultra-deepwater development, the project is unique as the first integrated cross-block development in Angola. This means the project will combine resources from multiple oil fields across different licensed blocks and develop them jointly.Per the terms of the contract, Saipem will handle the engineering, fabrication, transportation and installation of subsea infrastructure needed for production at the offshore field. Moreover, the contract includes the installation of about 180 kilometers of rigid pipelines for the transportation of hydrocarbons and other subsea equipment at the field. The installation of these structures will take place at water depths of up to 2,000 meters. The company is also responsible for transporting and installing 38 kilometers of flexible flowlines and jumpers to connect parts of the production system, and for laying 54 kilometers of umbilicals.In addition, the company has stated that it will utilize its construction vessels, FDS and Castorone, for offshore installation work. The construction vessels are well-suited to handle technically challenging deepwater projects and have prior experience working on similar offshore developments. Saipem has also mentioned that fabrication activities will be carried out in Angola at Saipem's Ambriz fabrication yard, with plans to involve local suppliers and labor. The estimated duration of the contract is about 40 months.The contract reinforces Saipem’s position as a leading provider of offshore engineering and construction services for complex deepwater developments. The Greater PAJ development is expected to support greater oil and gas production in Angola, helping it counter production decline from mature fields.SAPMF’s Zacks Rank and Key PicksSAPMF currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the energy sector are YPF Sociedad Anonima YPF, W&T Offshore WTI and FuelCell Energy FCEL. While YPF sports a Zacks Rank #1 (Strong Buy), W&T Offshore and FuelC...