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Saipem Secures $1.5 Billion Offshore Gas Development Contract in Turkey

Ruth MBy Ruth MSeptember 11, 2025No Comments3 Mins Read
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September 11, 2025 – Offshore engineering group Saipem has been awarded a $1.5 billion engineering, procurement, construction and installation (EPCI) contract by Turkish Petroleum Offshore Technology Center (TP-OTC) for the third phase of development at the Sakarya gas field, Turkey’s flagship offshore project in the Black Sea.

The award covers new subsea infrastructure, a floating production unit (FPU), and a major export trunkline, consolidating Sakarya as the largest gas development project in Turkey’s history.


Scope of Work

Saipem’s scope includes:

  • Floating Production Unit (FPU): Engineering and offshore installation of the FPU to handle hydrocarbons produced from subsea wells.
  • Gas Export Pipeline (GEP): A 24-inch diameter, 183 km subsea trunkline, connecting offshore facilities with the onshore processing plant at Filyos, on Turkey’s northern coast.
  • Subsea Flowlines: Installation of eight rigid flowlines that will tie back wells from the Sakarya and Amasra fields to the FPU.

The works will be executed in ultra-deep waters of up to 2,200 meters, demanding advanced pipelaying and subsea installation technology.


Fleet Deployment

Saipem is expected to mobilize some of its flagship construction assets for the project:

  • Castorone – the company’s state-of-the-art deepwater S-lay pipelay vessel, capable of installing trunklines in ultra-deepwater environments.
  • Saipem 7000 – a semi-submersible crane vessel among the most powerful in the world, likely to be deployed for heavy lifts associated with the FPU topsides.
  • Normand Cutter and related DP vessels – for subsea tie-ins, umbilical installations, and support activities.

These assets give Saipem the ability to manage the high technical demands of long-distance trunkline laying and precision subsea connections in challenging conditions.


Timeline

The contract is structured for completion within three years, with offshore operations targeted for 2027. Engineering works and early procurement are expected to start immediately, with offshore mobilization timed to match FPU fabrication and subsea component readiness.


Strategic Significance

Discovered in 2020, the Sakarya gas field holds estimated reserves of 710 billion cubic meters, making it the largest offshore hydrocarbon discovery in Turkey.

The field’s phased development is central to Turkey’s ambition of cutting reliance on imports from Russia, Iran, and Azerbaijan. Once all phases are fully operational, Sakarya is projected to meet up to 30% of Turkey’s domestic demand, positioning the Black Sea as a new regional hub for gas production.

For Saipem, the award underscores its ability to capture high-value, technically complex EPCI contracts in emerging offshore provinces, while expanding its strategic partnership with TPAO.


Outlook

As Turkey accelerates investment in domestic energy resources, the Sakarya development is set to play a pivotal role in reshaping the Black Sea offshore market. With Saipem’s Castorone and Saipem 7000 likely to headline offshore operations, the project also highlights the growing importance of specialized deepwater construction vessels in executing next-generation gas infrastructure.

The first offshore activities under this phase are expected in 2027, with production ramp-up thereafter. Industry observers will be watching closely for both operational milestones and the broader geopolitical impact of Turkey’s shift toward greater energy independence.


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