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Due process jettisoned in Saipem’s Bonga subsea award

There are indications that due process may have been jettisoned in the award of a contract worth $200 million from Shell for the subsea development of the Bonga North-West field offshore Nigeria

Sweet crude gathered that the National Petroleum Investment Management Services (NAPIMS), a subsidiary of the NNPC saddled with the responsibility of superintending the government’s interest in the joint ventures and production sharing contracts agreements with multinational oil companies failed to adhere to the due process regime with regard to the award of the Bonga North-West field development contract to Saipem.

An official of the ministry of petroleum resources who confirmed the development disclosed that other local engineering and fabrication companies have written a petition to protest the award.

The official who pleaded anonymity decried the development, noting that the ongoing reforms in the oil and gas industry are designed to address this kind of impunity.

“Hopefully, by the time the Petroleum Industry Bill is passed into law, the NNPC would have its limitations and NAPIMS would have been restructured and freed from the shackles and over-bearing influence of the NNPC,” the official volunteered.

The contract includes engineering, procurement, fabrication, installation and pre-commissioning services for 13 kilometres of 10 inch to 12 inch production pipe-in-pipe flowlines, four kilometres of 12 inch water injection flowlines, as well as related production facilities, Saipem said in a statement.

The contract also includes the installation of 15 kilometres of umbilicals. Bonga North-West lies in 900 to 1200 meters of water, and will be developed with 12 subsea wells tied back to the main Bonga infrastructure.

Marine activities will be carried out mainly by the Saipem FDS and Saipem 3000 vessels, in different time-frames between the second half of 2012 and the last quarter of 2013.


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