The U.S. energy technology company, Baker Hughes, has announced three major offshore contracts, which include two contracts from the Italian energy company Eni and a package of equipment for the fourth floating LNG unit Golar.
Eni Contracts for Cronos Development
Baker Hughes has confirmed a significant contract for Eni's subsea production systems in the Cronos gas development located off the coast of Cyprus. This contract includes four subsea trees, wellheads, connectors, manifolds, surface controls, and related services. The contract was registered in the third quarter of 2023, and work on it has already begun. Initial equipment delivery is expected in the first half of 2027.
According to previous reports, Eni and its partner, TotalEnergies, have signed the main engineering, procurement, construction, and drilling contracts for the Cronos project, which are estimated to be worth around $1.8 billion. The development in block 6 includes four subsea wells targeting gas resources estimated at over 3 trillion cubic feet. Production from this project is expected to begin in the first half of 2028, reaching up to 500 million cubic feet per day. The produced gas will be transported to Egypt and then liquefied for export at Damietta.
Golar FLNG Project and Baleine Phase 3 Development
Separately, Baker Hughes has secured a contract for an integrated well construction for Eni's Baleine Phase 3 development off the coast of Ivory Coast. This contract includes drilling services, digital solutions, drilling fluids, cementing, bits, layer retainers, and well cleaning services. The Baleine Phase 3 project, which was sanctioned in May, is expected to increase the total field production to approximately 150,000 barrels of oil and 200 million cubic feet of gas per day.
Additionally, Baker Hughes announced that its recent business, Chart, has signed a contract to supply two cryogenic cold boxes and two steam turbines from Peter Brotherhood for the fourth Golar FLNG project. Golar ordered a unit with a capacity of 3.5 million tons per year from CIMC Raffles in August and has allocated about $2.45 billion to this conversion project. The company has also selected the LNG carrier named Grace Dahlia, built in 2013 and purchased from the Japanese company NYK Line, as the donor vessel. CIMC Raffles will convert this FLNG project at its Yantai yard, with delivery scheduled for 2029.
