Saipem Inks $1.9bn Contract for GranMorgu Offshore Suriname

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CARACAS, VENEZUELA (Piero Stewart, Energy Analytics Institute, 14.Nov.2024) — Saipem has been awarded an $1.9bn EPCI contract by TotalEnergies subsidiary TotalEnergies EP Suriname B.V. for the subsea development of the GranMorgu project offshore Suriname.

Saipem’s scope of work entails the engineering, procurement, supply, construction, installation, pre-commissioning and assistance for the commissioning and start-up of the Subsea Umbilicals, Risers and Flowlines (SURF) package, Saipem announced 14 Nov. 2024 in an official statement.

This work includes the EPCI of approximately 100km of 10” to 12” subsea production flowlines, 90km of 8” to 12” water and gas injection lines, and the T&I of flexible risers, umbilicals and associated structures, at water depths ranging from 100m to 1,100m. 

For the offshore campaign, taking place between 2027-2028, Saipem will deploy a combination of S-Lay and J-Lay vessels, providing the optimal pipeline installation solution, the company said.  

Saipem will execute the project in cooperation with TechnipFMC, the company in charge of the Subsea Production System (SPS) and flexible risers and umbilical equipment packages, to optimize the integration between the mutual scopes of work.

This Suriname contract contributes to Saipem’s overall fleet booking until 2028. Further, it consolidates Saipem’s presence in South America and reinforces the company’s track record in the development of complex subsea projects.

RELATED: TotalEnergies Takes $10.5bn FID for the GranMorgu Development on Block 58

GranMorgu: the new dawn and Goliath grouper

GranMorgu is located in the offshore Block 58 oil and gas field some 150km off the coast of the small South American country. It holds recoverable reserves estimated at over 750 million barrels.

France’s TotalEnergies operates Block 58 with a 50% interest, along with the US’ APA Corporation, which holds the other 50% interest.

Suriname’s state-owned Staatsolie Maatschappij Suriname N.V. has signaled its intent to exercise its option to enter the GranMorgu development with up to 20% interest. TotalEnergies and APA have agreed that Staatsolie will contribute to the project from FID and has until Jun. 2025 to finalize its interest.

The full GranMorgu project, expected to last 5 years, represents the first major subsea development in Suriname. It aims to expand the production of the block central area through a system of subsea wells connected to a FPSO, according to Saipem.

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By Piero Stewart reporting from Caracas. © Energy Analytics Institute (EAI). All Rights Reserved.

ENERGY ANALYTICS INSTITUTE (EAI) https://energy-analytics-institute.org

Energy Analytics Institute (EAI), formerly LatinPetroleum.com, is a Houston-established private organization with a satellite presence in Calgary, Mexico City and Venezuela where it operates under Editores LatinPetroleum SA. Since 1999, EAI has been a leader in energy news coverage of Latin America in particular. Coverage, run out of Latin America, now spans the world and encompasses nearly all energy and energy-related sectors.

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