Saipem, in Joint Venture with Renaissance, a Turkish oil&gas services company, has been awarded a new Onshore E&C project in the Russian Federation worth 2.2 billion Euro overall. As leader of the JV, with a shareholding of 50%, Saipem’s portion of the total amount is therefore approximately 1.1 billion Euro.

The contract has been awarded by the company Artic LNG 2, consisting of Novatek JSPC (60%) and Ekropromstroy Ltd (40%).The project will be executed in the Tazovsky District, in the autonomous administrative region of Yamal-Nenets, in the western part of the Gydan Peninsula.

The project encompasses the construction of three Liquefied Natural Gas (LNG) plants, each with a capacity of about 6.6 million tons per annum (MTPA), that will be installed on Concrete Gravity Based Structures (GBS) and includes LNG storage facilities totalling 687,000 m3.

The works entrusted to the JV comprise the Design and Build of the three 30 metre high Concrete Gravity Based Structures on a surface of 330 x 152 metres. These Concrete GBSs will be fabricated in two dry docks in a Novatek provided facility in Murmansk. Subsequently, they will be towed and installed in Gydan.

The contract forms part of a strategic partnership agreement signed by Saipem and Novatek in 2016 for activities associated with LNG projects.

Stefano Cao, Saipem CEO, commented: “The awarding of this contract demonstrates how Saipem is fully integrated into the process of energy transition and represents a further success in the high added value LNG sector in which we have been operating for many years and in which, in the recent past, we have obtained important contracts. Finally, the signing of this contract reinforces the presence of Saipem in Russia, a country in which the Company has an important track record in the realisation of both onshore and offshore infrastructures”.

About Saipem

Saipem is one of the world leaders in drilling services, as well as in the engineering, procurement, construction and installation of pipelines and complex projects, onshore and offshore, in the oil & gas market. The company has distinctive competences in operations in harsh environments, remote areas and deepwater. Saipem provides a full range of services with “EPC” and “EPCI” contracts (on a “turn-key” basis) and has distinctive capabilities and unique assets with a high technological content.

About Novatek

PAO NOVATEK is one of the largest independent natural gas producers in Russia, and in 2017, entered the global gas market by successfully launching the Yamal LNG project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company’s upstream activities are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 15% of the world’s gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation. The Company’s shares are listed in Russia on Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol “NVTK”.