According to well-placed sources, the Milan-based player is expected to receive a letter of intent imminently after a recommendation from Sonangol P&P was apparently accepted by its partners in Block 4.

The news will be a bitter blow to Bergesen, Saipem's only renmaining competitor for the job.

A vendor, well-versed with the Norwegian player's bid, said Bergesen was "very dejected".

The contract will mark Saipem's FPSO debut in Africa and will build on last summer's first successful floater bid on Petrobras' Golfinho project off Brazil and on its ongoing involvement in Agip's Aquila field in Italian waters and Okono field off Nigeria.

Saipem