The French firm Technip and the Italian firm Saipem are battling for the $1 billion contract to build the FPSO vessel for the huge Akpo deep offshore field off Nigeria. Industry sources indicate that contracts for the construction of the 2 million barrel FPSO might be awarded this week.
Making a choice between Saipem and Technic has pitched French firm Total against indigenous oil company South Atlantic Petroleum. While Total favours Technip for its competitive bids, South Atlantic, according to sources, favoured Saipem for its lowest bid. Apart from the choice of contractor, the prolonged debate over the back-in-right into the field by the Nigerian National Petroleum Corporation (NNPC), whereby the corporation will acquire 50% of South Atlantic's 60% equity on the field, also delayed the execution of the project.
Technip was recently awarded the subsea contract for the Agbami field at the cost of $1.05 billion making it the company's second major contract since it made its entry into Nigeria about three years ago.
The over 600 million barrels Akpo condensate field is projected to be on stream by year 2008 with production rate of 70,000 bpd at inception and with peak production rising to 185,000 bpd. Akpo production may still exceed its peak production projections, following new discoveries that are yet to be made in the condensate field which energy experts believe is full of potentials.
