The Italian oilfield services company Saipem has announced that it has been awarded a US$1.5 billion contract for the supply and operation of a floating production storage and offloading (FPSO vessel) by the Italian supermajor Eni.
In a statement the company said the 20-year contract for Eni, who own 43% of Saipem, involves the conversion of a wholly owned oil tanker into a FPSO vessel, for which Saipem will provide the installation and the operation management.
“The FPSO vessel will have a storage capacity of 700,000 barrels and a production capacity of 12,000 barrels of oil per day. Production activities will start in the fourth quarter of 2011,” the statement said.
When the conversion is completed the vessel will be deployed to the Aquila field in the Adriatic sea. For the remainder of the contract the vessel will be employed as and when required by the Eni.
