NOC/ Eni poised to award onshore packages

18 January 2002

The National Oil Corporation (NOC)and partner Eniof Italy are on the point of awarding the main onshore contracts on the Western Desert gas project. 'Our partners are preparing to make an announcement on the first contract for the onshore Wafa and Melitah works shortly,' said Stefano Cao, chief operating officer of Agip, the upstream division of Eni, in London on 15 January. 'A number of other contract awards for the offshore and gas-processing works will also come soon.'

A consortium of Japan's JGC Corporation, with Italy's Tecnimont and its French subsidiary, Sofregaz, is the low bidder for the Wafa package, which is the largest being tendered on the project at just over $1,200 million. The turnkey contract covers the construction of a gas and oil-gathering network linking 38 wells in Block NC-169, 550 kilometres southwest of Tripoli. The selected contractor will also build associated gas treatment facilities. France's Technip, which did the front-end engineering and design (FEED), is also acting as the project management consultant (Libya, MEED Special Report, 17:8:01, pages 24-25).

JGC's team is also competing against three other bidders for the contract to build the Melitah facilities. They are Italy's Snamprogetti, with US-based ABB Lummus Globaland Hyundai Heavy Engineering & Construction Companyand LG Engineering & Construction, both of South Korea; France's Bouygues, with Argentina's Techint and Athens-based Joannou & Paraskevaides (J&P - Overseas); and South Korea's Samsung Corporation, with Germany's Linde. Works include the installation of control units and gas-sweetening, condensate treatment and sulphur recovery facilities.

The evaluation process for the contract to install the 520-kilometre twin gas and oil Wafa-Melitah onshore export pipeline has also reached an advanced stage. The bidders for the estimated $200 million contract are Athens-based Consolidated Contractors Company International (CCC); Italy's Saipem, with J&P; France's Spie Capag, with Germany's MAN GHH; Italy's Bonatti, with France's Entrepose; Techint; and Saudi Arabia's Metal Services Group, with Canada's SNC Lavalin (MEED 12:10:01).

The Melitah plant will eventually process gas, oil and condensate from the offshore Bouri field in Block NC-41 for export to Italy via the planned 570-kilometre, 32-inch-diameter Green Stream pipeline. Eni has signed offtake agreements for 8,000 million cubic metres a year (cm/y) of gas starting in 2004. However, the pipeline will have a capacity for exports to be increased to 11,000 million cm/y in a second phase (MEED 30:11:01).

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