Italian energy company given €8.5m for offshore Libya project
Italy’s Next Geosolutions (NextGeo) has reportedly been handed a €8.5m contract by engineering, drilling and construction service giant Saipem in order to help fund a project offshore of Libya, Offshore Energy wrote on 11th November.
NextGeo are an Italy-headquartered marine geoscience and offshore construction support service provider. While the company officially operates from Naples, Italy, they have established branches in countries such as the UK, UAE, Republic of Congo and Libya to help maintain the company’s global presence.
The company reportedly won an €8.5m contract by Saipem (officially based in Milan, Italy, but operating in over 50 countries) who will support installation activities for an offshore gas project near Libya.
Reportedly, NextGeo are responsible for deploying the vessels which will conduct offshore touch-down monitoring operations and construction support services during the installation phases that will be carried out by Saipem at the Bouri Gas Utilization Project (BGUP). Saipem are reported to have won a near $1b contract for the BGUP in 2023.
NextGeo claims that BGUP will be one of the most important North African offshore initiatives, utilising the associated gas from Bouri field, a major offshore oil reserve in Libya. While the BGUP involves the inclusion of a new gas recovery module, the project also highly focuses on improving and building upon existing infrastructure in the oil field.
“The award of these new contracts with Saipem marks a significant step forward in the growth path of our Group,” quoted Giovanni Ranieri, NextGeo’s CEO.
Libya’s oil industry forms the backbone of the North African country’s economy, with significant projects being invested in this year such as the brown field redevelopment and a new basin discovery amidst internal political tensions.
Italian company’s such as NextGeo and Saipem’s increasing involvement in the offshore oil field project could be the outcome of warming Libya-Italy relations. The two countries have frequently engaged in strategic economic partnership, and more recently seen eye-to-eye on issues such as Migration.
The contract marks a big potential investment for the Italian service NextGeo. Agreements are materialising and plans are falling into place quickly. While the current geopolitical, regulatory and security challenges faced by Libya pose risks to the project, there are promising outcomes for the Italian company should the offshore project be a success.
Offshore Energy, Maghrebi.org
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