Saipem has awarded Rosetti Marino Group of Companies a USD 300 million contract for engineering, procurement and construction services as part of its development project for Libya’s offshore Bouri gas field.

Saipem, an Italian oilfield services company, was awarded the USD 1 billion contract for the offshore project earlier this year, by Mellitah Oil and Gas B.V (a joint venture between Libya’s National Oil Corporation and Italian energy major, Eni). Saipem’s scope of work under the project is to revamp the facilities at the offshore gas field, which sits about 75 miles off the western coast of Libya, and develop facilities to eliminate gas flaring.

Under the recent award from Saipem, Rosetti Marino is commissioned to construct a 5,000 ton gas recovery module and modify and refurbish current facilities to accommodate the new module and its operations.

The Bouri offshore project falls under Libya’s longer-term strategic plans to exploit its offshore gas potential. This has seen the country enter into two big gas projects in this year alone: in addition to the contract with Saipem, Libya entered into a USD 8 billion investment agreement with Eni at the start of the year which aims to increase production and sales of Libyan gas, with a view to increasing sales both domestically and to Europe.

With further developments in mind, Libya also recently commissioned Norwegian energy giant Equinor to carry out a study of the country’s offshore gas potential overall.

Our team at Eltumi & Co specialise in energy and infrastructure projects. We track developments in these sectors in order to provide commercial legal support to businesses operating in the sector. Follow our LinkedIn page for ongoing updates and insight.