Saipem SpA (SPM), Europe’s largest oil contractor by market value, signed a letter of intent with Inpex Corp. (1605) to build a gas pipeline for Australia’s Ichthys field, two people with knowledge of the matter said.
The value of the contract is about $1.7 billion, the people said, declining to be identified before an announcement. A Saipem press officer declined to comment as did an Inpex spokesman. Japan’s Inpex is developing the $30 billion Ichthys gas field with Paris-based Total SA.
The project involves the construction of offshore facilities and plants in Darwin to produce 8.4 million metric tons of liquefied natural gas a year, 1.6 million tons of liquefied petroleum gas and 100,000 barrels a day of condensate, a light oil produced in association with natural gas. The companies will also build an 885-kilometer (550-mile) subsea pipeline connecting the plants and the offshore field.
Inpex said Nov. 18 an investment decision on the field may be delayed by a couple of weeks to mid-January because of the year-end holidays.
By Marco Bertacche and Alessandra Migliaccio ( Bloomberg )
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Source : Bloomberg , November 27 , 2011; Image: Inpex