Saipem Wins Offshore Services Contract From LUKoil

July 2012, Vol. 239 No. 7

ENI’s subsidiary, Saipem has signed a deal to lay pipelines that will carry oil and gas from an offshore Caspian Sea field. Saipem and LUKoil, which plans to launch the Vladimir Filanovsky field by the end of 2015, haven’t named the price of the contract.

For ENI, which owns 43% of Saipem, the deal was the third stroke of good fortune recently. ENI signed a deal April 18 to team with state-controlled Rosneft to gain access to two Russian offshore projects. Earlier it opened production at an Arctic oil and gas field with its local partners.

Saipem also laid the Nord Stream Phase I twin pipelines under the Baltic Sea for Gazprom. Saipem likely will lay one oil pipeline and one gas pipeline of 114 kilometers each by the end of 2015 in Phase II.

LUKoil signed another Caspian underwater pipeline agreement with Malaysia’s Bumi Armada Berhad in April. That contract is for two shorter pipelines, one for oil and the other for gas, to connect the operating Yury Korchagin field with the Vladimir Filanovsky field by the summer of 2015. The pipelines will each run 40 kilometers and cost $200 million.