Saipem wins $5.42bn contract for Zabazaba-Etan project in OPL 245


Italian engineering, construction and drilling contractor, Saipem has won a $5.42 billion contract for chartering, operations and maintenance for a Floating Production Storage Offloading (FPSO) tanker facility for the Zabazaba and Etan development project in Oil Prospecting License (OPL) 245, THISDAY reports.

It was however, gathered that the $2.96 billion of the contract price, which is expected to be spent in Nigeria in line with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, is under threat.

This followed concern that the contractor is allegedly planning to use sister or affiliated companies to execute the local content scope of the project in violation of the NOGICD Act and the recommendations of the Nigerian Content Development and Monitoring Board (NCDMB).

Nigerian Agip Exploration (NAE) Limited and Shell Nigeria Exploration and Production Company (SNEPCo) signed the production sharing agreement at the ratio of 50:50 for the development of Zabazaba and Etan, where NAE is the operator.