The discovery in the Piri prospect is Statoil and co-venturer ExxonMobil's sixth discovery and the fifth high-impact discovery in Block 2 offshore Tanzania.

The discovery of an additional two to three trillion cubic feet (tcf*) of natural gas in place in the Piri-1 well brings the total of in-place volumes up to approximately 20 tcf in Block 2.

"Since 2012 we have had a 100% success rate in Tanzania and the area has become a core exploration area in a very short period of time. We quickly went from drilling one well to a multi-well program, and with Piri-1 we are continuing the success," says Nick Maden, senior vice president for Statoil's exploration activities in the Western Hemisphere.

The new gas discovery was made in the same Lower Cretaceous sandstones as the gas discovery in the Zafarani-1 well drilled in 2012.
The Piri-1 discovery is the venture's sixth discovery in Block 2. It was preceded by the high-impact gas discoveries Zafarani-1, Lavani-1, Tangawizi-1 and Mronge-1, and a discovery in Lavani-2.

Piri-1 was drilled by the drillship Discoverer Americas. The well location is two kilometers southwest of the Lavani-1 well at 2,360-metre water depth. The Discoverer Americas has now moved location and is currently drilling the Binzari prospect in Block 2.

"Additional prospectivity has been mapped and will be tested throughout 2014 and 2015. We expect to drill several additional exploration and appraisal wells and hope that the results from these wells will continue to add gas volumes for a future large-scale gas infrastructure development," says Maden.

Statoil operates the license on Block 2 on behalf of Tanzania Petroleum Development Corporation (TPDC) and has a 65% working interest. ExxonMobil Exploration and Production Tanzania Limited holds the remaining 35%. Statoil has been in Tanzania since 2007, when it was awarded the operatorship for Block 2.

(*1 Tcf =180 million barrels of oil equivalent)

Installing new loading buoys is one of several projects intended to extend Gullfaks' life towards 2040. 2.55 billion barrels of oil from the Gullfaks field have passed through the existing loading buoys since first oil.

Towing of the first Gullfaks loading buoy.

Due to come on line in June the towing of the first loading buoy has started. The second old loading buoy will be removed in August, and the new buoy is scheduled to come on line in mid-September.

The two existing loading buoys have been loading oil from Gullfaks since 1986.

"This is an important value enhancement project for the Gullfaks field. Gullfaks needs to have reliable loading systems for crude oil export in the future. The two existing loading systems and loading buoys installed in 1986 and 1987 are approaching the expected design life of 30 years," says Øystein Arvid Håland, asset manager, Development and Production Norway.

The project is an important building block in the efforts to secure the oil export of Gullfaks and the tied-in fields for the next 30 years.

New loading buoys will reduce the need for logistics and helicopter transportation in connection with maintenance. Coordination and synergies with the Statfjord field related to operations, maintenance and spares will be facilitated.

Standard buoy

The loading system is of the same type as that installed at Statfjord and is a simpler system than the existing Gullfaks system.

The new loading buoys are scheduled to come on line in June and mid-September.

The new loading systems will have the same oil loading capacity as the existing systems.
The existing 6,000-tonne loading buoys will be towed to Stord for demolition at Scanmet AS. The aim here is a 98% level of material reuse.

Located in 136 meters of water the loading buoys are situated some 2.4 kilometers north-west and 2.4 kilometers south-east of Gullfaks A.

They are owned by the Gullfaks licensees. Statoil is the operator with a 51% interest, whereas Petoro and OMV have the remaining interests of 30% and 19%, respectively.

Major contracts:
Technip Norge AS has been responsible for engineering work, preparations, the removal of the existing loading buoys, towing and hand-over to the disassembly and demolition supplier – in addition to installing the new loading systems.

The contract for disposal of the two loading buoys from Gullfaks is awarded to Scanmet AS.

The new loading systems are delivered by National Oilwell Varco in Arendal.

New loading hose for Gullfaks.

Source: U.S. Energy Information Administration, International Energy Statistics

Norway is the world's third-largest natural gas exporter, after Russia and Qatar. In 2013, Norway supplied 21% of total European natural gas needs. Norway's natural gas reaches the Continent mainly via its extensive export pipeline infrastructure (see map below), while a small fraction is exported as liquefied natural gas (LNG) by tanker. The largest recipients of Norway's natural gas exports in 2013 were the United Kingdom, Germany, France, the Netherlands, and Belgium.

Source: U.S. Energy Information Administration, with permission from the Norwegian Petroleum Directorate

EIA estimates that Norway produced 3.97 trillion cubic feet (Tcf) of dry natural gas in 2013, a decline of 0.18 Tcf from 2012. EIA also estimates that Norway's net exports for 2013 were 3.8 Tcf of natural gas, which, because of its modest domestic demand, was 96% of its production.

Norway's single largest natural gas field is Troll, which, according to estimates from the Norwegian Petroleum Directorate, produced 1.0 Tcf in 2013,
representing 27% of Norway's total natural gas production that year. Three other major producing fields in 2013 were Ormen Lange (0.76 Tcf), Asgard (0.34 Tcf), and Kvitebjorn (0.24 Tcf). These four fields accounted for just over 60% of Norway's total dry natural gas production in 2013.

For more information, see EIA's Norway Country Analysis Brief.

Saipem has won a new offshore Engineering & Construction contract in Azerbaijan, for a total amount of approximately $1.8 billion.

BP, on behalf of the Shah Deniz consortium, has awarded to the Saipem, Bos Shelf and Star Gulf consortium, a Transportation and Installation contract for the Stage 2 development of the Shah Deniz field.

The field is located 90 kilometers offshore Azerbaijan, in water depths from 75 meters to 550 meters. The scope of work of the contract includes the transportation and installation of jackets, topsides and subsea production systems and subsea structures, the laying of over 360 km pipelines, diving support services and the upgrade of the Pipelay Barge Israfil Huseinov (PLBH), Dive Support Vessel Tofiq Ismailov (DSV) and Derrick Barge Azerbaijan (DBA) installation vessels. The project will be completed by the end of 2017.

Commenting on the award, Umberto Vergine, Saipem CEO, said: "The Caspian is a strategic area for the oil and gas industry and we have been working in the region since 1996. We have built a solid and unique presence in the area thanks to our capabilities and expertise in large and complex offshore projects. I'm very pleased that Saipem will be involved in the development of Shah Deniz Stage 2, which will ultimately deliver gas to Europe".

 Saipem has also been contracted by South Stream Transport B.V. to provide supporting works relating to the construction of the second line of the South Stream Offshore Pipeline for a total value of approximately €400 million.

The entire offshore South Stream project consists of four parallel gas pipelines, across the Black Sea from Russia to Bulgaria, each 931 kilometers long, to be laid at depths of up to 2,200 meters.

According to this contract Saipem will perform additional supporting works, including engineering, coordination of storage yards, cable crossing preparation, and connecting the offshore pipeline to the landfall sections through so called "tie ins".

The works relating to the construction of the second line will end by the end of 2016.

This contract is an addendum to the major contract for the first line of the South Stream Offshore Pipeline project signed on the 14 March 2014.

South Stream Transport B.V. is an international joint venture between Gazprom (50%), Eni (20%), EDF (15%) and Wintershall (15%).

Eni Norge AS awards DNV GL a framework agreement for the supply of inspection services to the Goliat platform in the Barents Sea.

The term of the contract is three years, with an option for a two-year extension. The assignment consists of planning and carrying out inspections of static equipment, load-bearing structures and offloading and anchoring systems aboard the Goliat FPSO during its operational life.

Local spin-off effects
The contract, which will help further reinforce the petroleum cluster in Northern Norway, is in line with Eni Norge's ambition to create spin-off effects connected with the Goliat project.

DNV GL has experience of working for Eni Norge from the company's Harstad section, for example in the field of oil spill contingency. In connection with the new agreement for inspection services, DNV GL sees potential for moving personnel to Hammerfest. Also DNV GL subcontractor ApplusRTD will establish a branch office in Hammerfest during the coming year.

The contract underpins DNV GL's established business strategy for growth in Northern Norway and heightened focus on services connected with Arctic operations.

First in the Barents Sea
Goliat is the first field to be developed in the Norwegian sector of the Barents Sea, and one of the biggest industrial projects ever undertaken in Northern Norway. The cylindrical Goliat platform is a floating production, storage and off-loading unit (FPSO), and is full of unique technological systems, specially adapted to conditions in the Barents Sea. The estimated reserves in the field are 174 million barrels of oil and 8 billion standard cubic meters of gas.

Noble Energy, Inc. (NYSE: NBL) has announced that the parties have agreed to terminate the non-binding memorandum of understanding regarding the sale of interest in the Leviathan licenses, offshore Israel, to Woodside Petroleum. Following termination of the agreement, working interests in the Leviathan Project remain as follows: Noble Energy as operator (39.66 percent), Delek Drilling (22.67 percent), Avner Oil Exploration (22.67 percent), and Ratio Oil Exploration (15 percent).

Charles D. Davidson, Noble Energy's Chairman and CEO, commented, "The plans for development of the Leviathan discovery have significantly changed since we began the search for a partner approximately two years ago. Perhaps the most dramatic changes have been associated with the growth in the regional markets. The emergence of these regional markets, which are accessible through pipeline outlet, has pushed the need for LNG into a later phase of development versus our earlier plans. While we have not been able to reach a mutually acceptable agreement with Woodside, we continue to move forward with our partners and the Israel government with plans to develop this world-class asset for the benefit of all stakeholders."

Significant progress has been made on the development of the Leviathan field, following approval of Israel's natural gas export policy, an agreement with Israel's Anti-trust Authority, and receipt of the Development and Production Leases for Leviathan. Noble Energy is targeting to sanction the initial phase of development at Leviathan by the end of 2014, with first production from the field currently planned for late 2017.

The initial development phase is planned to be a 1.6 billion cubic feet per day floating, production, storage and offloading (FPSO) system, to provide natural gas into Israel and surrounding regional markets. Front-end engineering and design studies are ongoing for the second phase of development at Leviathan, which is anticipated to be a floating, liquefied natural gas (FLNG) production system.

The Leviathan Project is located offshore Israel in approximately 5,550 feet of water. It has an estimated 19 trillion cubic feet of discovered natural gas resources.

Boost for Novorossiysk supply base to meet growing demand

GAC Russia is underlining its commitment to offshore oil & gas exploration and extraction in the Black Sea with a major project to upgrade its facilities at the port of Novorossiysk.

The Black Sea is one of the areas in which the development of fields looks set to boom as Russian oil majors are granted licenses and joint ventures are formed with international energy companies to develop blocks.

Supply Base Manager Alexander Pavlov (left) discusses planned upgrades

GAC Russia has already signed contracts with one of the key players to provide supply base support for their operations from Novorossiysk. Facilities include a dedicated berth, open and closed storage areas, site for liquid mud plant and dry bulk plant and office premises.

During the pre-drilling phase, GAC's Novorossiysk supply base will be used for the accumulation of materials and equipment being gathered in preparation for offshore operations. When drilling starts, the base will swing into full action with round-the-clock operations loading and offloading supply vessels supporting the offshore operations. GAC will provide experienced personnel, mobile cranes, forklifts and trucks to arrange the full scope of supply base management in strict compliance with national and international HSSE regulations.

The project will include coordination with a range of local authorities and service providers, as well as screening and pre-qualifying partners to ensure they meet the stringent standards of the GAC Group. Arkady Podkopaev, GAC Russia's Managing Director, says his company is equal to those challenges, and has already obtained OHSAS 18001:2007 certification in preparation for the task.

"By combining our local experience and expertise with the GAC Group's versatile range of services and international experience in supply base business, we have what it takes to overcome the current limitations of Novorossiysk port to create a strong supply base to support upcoming operations in the Russian Black Sea," he adds. "We are also well prepared to set up bases elsewhere in Russia in the near future."

Subsea 7 S.A. (Oslo Børs: SUBC) today announced the award of a three-year US$160 million contract extension by BP Exploration & Production Inc. for
light subsea construction, inspection, repair and maintenance services in the US Gulf of
Mexico.

The contract will run from the second quarter 2014 to the third quarter 2017. The scope covers the provision of two vessels, including a dedicated vessel on a full-time basis, associated project management and engineering support, ROV-based inspection and intervention, and light construction work.

One of the vessels to be utilised in the contract is a new-build offshore subsea construction vessel while the other is a light construction vessel. Both vessels will be chartered on a long- term basis.

John Evans, Subsea 7's Chief Operating Officer, said: "We are very pleased to have been awarded this important contract extension and to be able to continue growing our valued relationship with BP. This award highlights our proven track record for safely delivering successful Life-of-Field operations."

CGG has announced that Robertson Geolab, specialists in surface geochemistry in its GeoConsulting business line, is currently performing a multi-client surface geochemistry (shallow core) survey to detect seafloor seepages of hydrocarbons in the South East Barents Sea. The project has received high prefunding from major oil industry players.

The survey covers all the blocks in this region which have been recently proposed by the Norwegian Petroleum Directorate (NPD), as well as sampling of outlying sub-areas where hydrocarbon seepages are suggested to be present by methods including satellite image analysis from NPA Satellite Mapping. The coring method used has minimal environmental impact, being simply the dropping of a thin, clean iron core barrel and penetrates the seafloor sediments to a few meters depth to retrieve mud samples.

The main aim of the survey is to detect active petroleum systems in the area, targeting both larger and smaller structures of interest. The extensive geochemical analysis program for both the gaseous and liquid hydrocarbons in the sediments will yield information as to the gas- or oil-affinity of the petroleum systems and the sourcing /maturity of the hydrocarbons. This information will be of prime importance in connection with de-risking of areas by the oil companies, prior to more detailed investigations. It is therefore also of importance in limiting any future environmental issues, e.g. from over-drilling, and not least in assessing the background levels of natural seafloor seepage pollution that occurs in the region.

The collected data will be processed to provide a full geochemical interpretation report, including anomaly mapping in ArcGIS format for assimilation into clients' own seismic or geological databases. The final report for this survey will be available in December 2014, in time for our clients' future licensing round decisions.

Sophie Zurquiyah, Senior Executive Vice President of CGG's Geology, Geophysics & Reservoir Division (GGR), said: "Our Barents Sea oil and gas seep survey is part of our rich multi-disciplinary multi-client data library that we are developing in the region. It complements existing exploration products ranging from our offshore hydrocarbon seeps database and regional Gravity & Magnetics coverage to our state-of-the-art BroadSeisTM surveys. It will result in unique exploration data, which directly targets and measures the hydrocarbons, within an exciting frontier area about which we have, as yet, very little information regarding active petroleum systems."

In March 2011 Kvaerner signed a contract with ConocoPhillips to deliver the topside for the Eldfisk 2/7 S integrated production platform. The topside was completed in April 2014 as planned, and was towed to field in the North Sea on Friday May 16.

"We are extremely proud of the Eldfisk delivery. It is a state-of-the-art platform and possibly one of the most complete topsides ever delivered," says Jan Arve Haugan, President & CEO of Kvaerner.

The Eldfisk 2/7 S topside consists of one combined living quarter and utility module and a combined process and wellhead module, with a total weight of 15 500 tons. The project was executed with fabrication deliveries from subcontracting partners in Poland and Finland, and fabrication, assembly and commissioning at Stord. In addition, the contract included the fabrication of two bridges, one bridge support module and a flare, all of which were delivered in 2013 directly to the field from Kvaerner's subcontractors in Poland. At peak, Kvaerner has had more than 2 000 people involved in the project.

As the topside leaves Stord, it will be towed to field and lifted onto the steel jacket substructure in two separate lifts. Kvaerner will then perform the offshore hook-up work to prepare the platform for production start. This work has already commenced and will continue through the summer and into the fall. 

"Effective hook-up and preparation for production start is a specialised line of work where we have strong experience. We look forward to following Eldfisk offshore to assist the customer with the completion activities," says Haugan.

Eldfisk is a part of the Greater Ekofisk Area and has been in production since 1979. The field is located in the southern part of the North Sea, about 300 kilometers from the Norwegian shore.

Statoil (OSE: STL, NYSE: STO) has announced that it has started its latest Gulf of Mexico exploration campaign. It started drilling Martin, a high-impact prospect, on 20 April.

"We consider Martin one of the top prospects in our global portfolio," says Jez Averty, senior vice president of exploration for Statoil in North America. "Since acquiring this prospect in 2012, we've advanced it in 20 months which is considerably faster than the normal maturation time."

As the world's largest offshore operator, Statoil has a significant presence in the Gulf of Mexico.  In addition to its active exploration program, Statoil is a partner in many of the largest fields under development, including Jack, St. Malo, Big Foot, Julia, Vito and Stampede.

"We're committed to profitability growing our business in North America," said Bill Maloney, Statoil executive vice president of its North America operations. "Having a strong and robust exploration program is essential for long-term growth, and we're very excited to begin this latest drilling campaign in the Gulf of Mexico."

In a speech at a private reception during the Offshore Technology Conference in Houston, Maloney explained that Statoil's growth in North America has been methodical and incremental. The company has made strategic acquisitions in onshore and offshore plays while building its midstream capacity.  The company has been active in North America for 25 years.

In 2013, Statoil was ranked as the world's most successful exploration company, finding more oil and gas than any other company. Statoil also made the world's largest conventional oil discovery in 2013. Its Bay du Nord discovery in the offshore east coast of Canada contains 300-600 million barrels of oil.

Petrobras work every day to become one of the world's five largest oil producers. Last year, the company reached the unprecedented mark of nine platforms delivered, which will add a million barrels per day to their production capacity.

Get to know these nine platforms completed in 2013:

1) P-58
An FPSO-type platform, P-58 became operational in March 2014. Installed at about 85 km off the coast of Espírito Santo, in water depths of 1400 meters, this platform has a daily processing capacity of 180,000 barrels of oil and 6 million cubic meters of natural gas from pre-salt and post-salt reservoirs.
Check out P-58's construction process.

2) P-55
A semi-submersible type platform, P-55 is the largest of its kind in Brazil. It went into production in late 2013, at the Roncador field (Campos Basin), anchored at a depth of about 1800 meters. It is capable of processing up to 180,000 barrels of oil and of compressing 4 million cubic meters of gas per day.
Learn how P-55 was assembled.

3) P-63
An FPSO-type platform, P-63 went on stream in November 2013. It is capable of processing 140,000 barrels of oil and 1 million cubic meters of gas, and of injecting 340,000 barrels of water per day. P-63 makes up the first production system at Papa-Terra (Campos Basin), which also includes P-61 and SS-88 TAD. Learn more about P-63.

4) FPSO Cidade de Paraty
FPSO Cidade de Paraty went into production in the Santos Basin pre-salt region (Lula Nordeste area) in June 2013, anchored at a depth of 2120 meters, some 300 km off the coast. It is capable of processing up to 120,000 barrels of oil and of compressing 5 million cubic meters of gas per day.

5) FPSO Cidade de Itajaí
FPSO Cidade de Itajaí went into production in February 2013, in the Santos Basin post-salt region (Baúna and Piracicaba Field), 210 km off the coast. It is capable of processing up to 80,000 barrels of light oil and 2 million cubic meters of gas per day.

6) FPSO Cidade de São Paulo
FPSO Cidade de São Paulo went into production in January 2013, in the Santos Basin pre-salt region (Sapinhoá Field). It is capable of processing up to 120,000 barrels of oil and 5 million cubic meters of gas per day.

7) P-61

The first TLWP (Tension Leg Wellhead Platform) type rig to be built and operated in Brazil, P-61 will operate in the Papa-Terra field (Campos Basin) with P-63. Together, the units will have capacity to produce 120,000 barrels of oil per day. It is forecast to go on stream in the second half of 2014.

8) P-62
Installed about 125 km offshore, in the Campos Basin, at water depths of 1600 meters, this FPSO-type platform is expected to go into production in the first half of 2014. It is capable of processing up to 180,000 barrels of oil and 6 million cubic meters of gas per day from post-salt reservoirs.
Check out the construction and assembly process of P-62.

9) SS-88 TAD
The SS-88 TAD (Tender Assisted Drilling) semi-submersible unit will be anchored next to P-61, in the Papa-Terra field (Campos Basin), to provide power, accommodations, drilling fluid storage space, and support systems.

A new state-by-state analysis shows that Florida could add up to 10,736 jobs and $1.23 billion to the state economy in 2020 if federal restrictions on U.S. crude exports were lifted, said Executive Director of the Florida Petroleum Council (FPC) David Mica.

"The U.S. is poised to become the world's largest oil producer, and access to foreign customers will drive job creation here in Florida and around the country," said Mica. "When it comes to crude oil, the rewards of free trade are amplified wherever energy, manufacturing, and consumer spending drive growth. American energy exports mean new jobs, higher investment, and greater energy security."

The new report was conducted by ICF International and EnSys Energy. It provides a state-by-state analysis of economic benefits first outlined this March in a national report, which showed that lifting export restrictions could save consumers up to $5.8 billion per year, on average, between 2015 and 2035, as higher production and efficient markets help boost supplies and lower costs.

The latest report shows that Florida is among 18 U.S. states that could gain over 5,000 jobs each in
2020 from exports of U.S. crude oil. The study also forecasts that most states could see economic activity grow by hundreds of millions of dollars due to growing energy production and downward pressure on the prices at the pump. In addition:

Depending on global price trends, nine states – Florida, Michigan, Indiana, California, New York, Pennsylvania, Ohio, Texas, and North Dakota -- could see over $1 billion each in state economic gains in 2020, with slower growth through 2035 after new drilling plateaus.

Eight states – Illinois, Florida, New York, Pennsylvania, Ohio, California, North Dakota, and Texas – could gain over 10,000 jobs each in 2020.

Texas alone could gain up to $5.21 billion in added economic activity and 40,921 jobs in 2020.

North Dakota could gain 22,215 added jobs and $4.81 billion in state economic growth in 2020.

States with significant manufacturing and consumer spending, such as California, could add

23,787 jobs and $2.06 billion in economic activity in 2020. Illinois could add 10,033 jobs and $990 million in state income in 2020.

"Restrictions on exports only limit our potential as a global energy superpower," said Mica. "Additional exports could prompt higher production, generate savings for consumers, and bring more jobs to Florida. The economic benefits are well-established, and policymakers are right to reexamine 1970s- era trade restrictions that no longer make sense."

The FPC is a division of API, which represents all segments of America's oil and natural gas industry. Its more than 600 members produce, process, and distribute most of the nation's energy. The industry also supports 9.8 million U.S. jobs and 8 percent of the U.S. economy.

Production from a subsea template at the Snorre B platform was shut down on 17 May following the discovery of an abnormal erosion of mass under the template.

Over the last 24 hours, no movement has been observed in the pit at the subsea template. The area is under continuous ROV surveillance and sediment samples have been taken. "Brine" (water with heavier sediments) was pumped into the well for a brief period in the event that there was some sort of connection between the pit and the well. There have been no signs of hydrocarbon leaks in any of the surveys carried out since the pit was discovered on 17 May.



"The pit is stable and is being monitored continuously. The most important thing for us now is to clarify what caused the pit to form, and a number of explanations are being examined," says Bente Aleksandersen, Statoil's senior vice president for Operations South.

On Monday, 33 people were moved over to the Safe Scandinavia, and then transported onshore as a precautionary measure after movement and hydrocarbon indications were observed in the pit. In connection with this, the emergency response organization was mobilized, and then demobilized the same evening. The Petroleum Safety Authority Norway is being provided with continuous updates.

Statoil has decided to keep production shut down until the necessary investigations have been carried out.

AziPac Ltd. is a newly established exploration and production company focused on exploring for oil and gas in the maritime basins offshore the Asia Pacific region and the Bay of Bengal. AziPac is backed by Seacrest Capital Group, the global energy investor. AziPac will be headquartered in Singapore.

Portfolio
At launch, AziPac has secured a number of exploration licenses in the Southeast Asian offshore and Bay of Bengal regions. Further details of the opening portfolio of licenses will be made public following final regulatory approval in each of the relevant countries. AziPac has built up a significant pipeline of attractive exploration opportunities throughout the region.

Management & Technical Resources
AziPac joins a growing portfolio of regional companies established by the Azimuth Group ("Azimuth") and backed by Seacrest Capital Group, the global energy investor. Azimuth has exploration assets offshore Asia-Pacific, Ireland, Norway, the United Kingdom and Namibia. Azimuth has a team of thirty oil industry professionals with a proven track record of finding significant hydrocarbons offshore, including the Asia Pacific region. The team has been involved in over 100 oil and gas discoveries globally. AziPac, like the other Azimuth exploration companies, will utilize this shared resource of world-class professionals, as well as leading edge seismic data, to optimize exploration opportunities and de-risk assets in the Asia-Pacific region.

Azimuth Group is managed and backed by Seacrest Capital Group, a leading global energy investor.

David Sturt, Director of AziPac, Commented:
'The offshore Asia Pacific and Bay of Bengal regions are experiencing a resurgence in exploration for new oil and gas reserves. This is driven by exciting recent discoveries, new licensing rounds, new company entrants and, importantly, the potential for new technologies to be brought to bear in new and mature exploration areas. AziPac has been established with an opening portfolio of world-class exploration assets and is well supported by the Azimuth Group which includes professionals who have a proven ability to discover significant hydrocarbons in the region. We aim to rapidly grow the company, with a focus on technology and innovative exploration thinking to unlock value in traditional and new oil and gas basins offshore Asia."

Saipem has been awarded two contracts in Angola by Total, for a combined total of more than $4 billion.

The main contract is worth more than $3 billion, and is an EPCI for the engineering, procurement, installation and commissioning of two converted turret-moored Floating Production Storage and Offloading units (FPSO) for the Kaombo Field Development Project, located in Block 32, offshore Angola. Saipem has also been awarded a seven-year contract of approximately $1 billion for operation and maintenance services of the two vessels.

The two converted FPSO units, owned by Total, will each have an oil treating capacity of 115,000 barrels per day, a water injection capacity of 200,000 barrels per day, a 100 million scfd gas compression capacity and a storage capacity of 1.7 million barrels of oil. The scope of work of the contract includes engineering, procurement, conversion of the tankers, fabrication and integration of the topsides of the FPSO units and the installation of the mooring systems, as well as the hook-up, commissioning and operations start-up. Saipem will provide seven years of operation and maintenance services for the FPSO units.

The Kaombo FPSO project will be managed by the Saipem Floaters Business Unit located in France. Part of the activities related to engineering, procurement, topsides modules fabrication and integration as well as commissioning onshore and offshore works will be carried out in Angola. The topsides fabrication activities will be undertaken in Saipem's Karimun Island Yard, located in Indonesia. The tankers conversion and the topsides modules integration will be executed at a shipyard in the Far East. The first FPSO unit will be operational by the first quarter of 2017 and the second unit by the second quarter of the same year.

Commenting on the award, Umberto Vergine, Saipem CEO, said: "This contract is in line with Saipem's strategy of pursuing growth opportunities in high complexity Floaters and FLNG construction in specific geographic areas, such as Asia Pacific and Africa, where the company can leverage its engineering capabilities, strong local content competencies and unique availability of fabrication yards."