Industry

The contracts are related to the offshore Safaniya oilfield. (Image source: Adobe Stock)

Saipem has been awarded two offshore contracts in the Kingdom of Saudi Arabia together worth around US$400mn, under its existing Long-Term Agreement with Aramco

The first covers the Engineering, Procurement, Construction, and Installation (EPCI) of one water injection tie-in platform, two water injection wellheads, approximately 5 km of pipeline with diameters of 24 inches and approximately 15 km of 15kV cables at the Safaniya oilfield. The second contract includes the EPCI activities for four water injection wellheads, as well as associated subsea facilities, also at the Safaniya oilfield.

For the offshore operations, Saipem will employ its construction vessels that are currently deployed in the region.

The fabrication activities related to the projects will be executed at Saipem’s Saudi Fabrication Yard by Saipem Taqa Al-Rushaid Fabricators Co. Ltd. which continues to contribute to the development of local industry capabilities.

One of the world’s largest offshore oilfields, Safaniya holds around 37bn bbl of reserves and has a production capacity of over 1.2mn bpd. It is located around 265 km north of Dhahran.

Saipem was in February awarded a US$500mn offshore contract under its Long-Term Agreement with Aramco, covering the EPCI of a 48inch trunkline, comprising approximately 65 km offshore and 12 km onshore, as well as associated subsea facilities in the Safaniya oilfield.

The award of these new contracts strengthens Saipem’s presence in the Kingdom of Saudi Arabia and further consolidates its longstanding relationship with Aramco.

The conflict in the Middle East could result in repair and restoration costs for energy infrastructure of up to US$58bn, with the speed of recovery depending on how quickly operators can secure access to constrained supply chains, says Rystad Energy

Overall, repair costs for the oil and gas sector are estimated at between US$30-50bn, with non-hydrocarbon infrastructure including aluminium smelters, steel plants, power stations and desalination facilities adding a further US$3-8 bn.

The main constraint to recovery, is access to equipment, contractors and logistics, with repair activity and the restoration of existing production being prioritised over new project execution and greenfield developments.

Rystad notes the divergence in recovery paths between countries and assets, with some facilities where damage was contained and contractor capacity was already present being able to resume operations within weeks, particularly where work is limited to surface equipment and modular repairs. In contrast, recovery could take years where facilities require construction of core process units or are dependent on long-lead equipment .

Downstream refining and petrochemical assets account for the largest share of repair costs, reflecting their complexity and the extent to which they were impacted in the later stages of the ongoing war. Midstream and upstream assets follow, while wells and industrial infrastructure are less impacted.

Iran accounts for the highest number of impacted facilities with repair costs potentially up to US$19bn, with damage sustained across the value chain, with simultaneous disruption to processing, refining storage and exports. Restoration and repair will likely take longer than elsewhere in the Gulf due not only to the damage incurred but also because of lack of access to western EPC contractors, OEMs and technologies.

In Qatar, damage is centred on Ras Laffan Industrial City, where multiple LNG trains have been affected alongside disruption at the Pearl gas-to-liquids facility. Redirection of capacity towards repair activity could lead to delays in ongoing expansion projects such as the North Field expansion.

Recovery timelines are less dependent on on-site execution and the scale of impact and more on how quickly operators can secure access to constrained supply chains says Rystad.

“What is emerging is less a reconstruction programme and more a competition for access – access to equipment, contractors and logistics capacity.

“Those that move early will secure capacity and shorten timelines, while others may face delays that extend well beyond the physical scope of damage.”

Karan Satwani, senior analyst, supply chain research commented, “This is no longer just a story about damaged facilities in the Gulf. It is a stress test for the global energy supply chain.

“The same equipment and contractors needed to rebuild are already committed to a wave of LNG and offshore projects sanctioned since 2023.

“Repair work does not create new capacity, it redirects existing capacity, and that redirection will be felt in project delays and into inflation far beyond the Middle East.

“The US$58 bn bill is the headline, but ththe knock-on effects on energy investment timelines globally may prove just as significant.”

The collaboration combines Cumulocity’s advanced, scalable industrial AIoT platform with Aramco Digital’s localised solution design, integration, and execution capabilities. (Image source: Aramco Digital)

Aramco Digital, the technology arm of Aramco, has entered into a strategic partnership with Cumulocity, a global leader in industrial AIoT, to deliver industrial AIoT solutions across the GCC

Cumulocity is a leading global industrial AIoT platform provider offering self-service device management and low-code application development powered by AI to accelerate time-to-value, while Aramco Digital is focused on driving digital transformation and advancing technological innovation across industrial and strategic sectors.

The collaboration combines Cumulocity’s advanced, scalable industrial AIoT platform with Aramco Digital’s localized solution design, integration, and execution capabilities and is designed to accelerate production-ready deployments across asset-intensive industries.

The first deployment involves Aramco Digital implementing Cumulocity as the core platform for an advanced fleet management programme supporting Aramco’s operations in the Kingdom. The deployment will enable scalable, real-time visibility and intelligent management of connected vehicles and industrial assets to drive greater operational efficiency, reliability, and data-driven performance.

“This agreement reinforces Aramco Digital’s focus on delivering scalable digital platforms that advance industrial transformation across the Kingdom and the wider region,” said Nabil Al-Nuaim, CEO of Aramco Digital. “By combining a proven industrial AIoT platform with strong regional execution capabilities, we are enabling organisations to connect critical assets, enhance operational insight, and translate data into measurable business outcomes.”

“Aramco Digital’s regional expertise and proven ability to deliver complex industrial digital transformation projects make them an ideal partner for scaling advanced IoT solutions across the region,” said Bernd Gross, CEO of Cumulocity. “Cumulocity’s industrial AIoT technology is trusted in large-scale, asset-intensive environments worldwide. Together, we are enabling faster, more reliable enterprise-scale deployments across the GCC.”

The agreement will enable customers across the region to access to Cumulocity’s advanced AIoT platform through Aramco Digital’s local integration, engineering, and lifecycle support capabilities, accelerating enterprise-scale digital transformation across asset-intensive industries an supporting efforts by industrial operators to modernise large fleet of connected assets across sectors including transportation, logistics, energy and infrastructure.

"This milestone reflects the pace at which digital transformation is accelerating across the Kingdom, driven by ambition, collaboration and disciplined execution," commented Aramco Digital in a LinkedIn post.

The rental alliance will combine technical expertise with expanded service offerings. (Image source: Envirent/GoSubsea)

GoSubsea and Envirent, two of Norway’s fastest-growing offshore companies, have announced a strategic rental alliance that combines technical expertise with expanded service offerings, as both organisations prepare to move into larger facilities to support expanding operations

Envirent is a subsea rental equipment specialist, delivering reliable offshore equipment, ROV tooling and hydraulic systems for subsea operations internationally, while GoSubsea provides high-quality survey and inspection equipment, and is a trusted partner in offshore rental services. In 2025, both companies were received the prestigious Gaselle Award, reserved for Norway’s fastest-growing and most profitable medium-sized enterprises.

The partnership is set to improve access to integrated subsea ROV tooling and survey equipment for the offshore industry, providing responsive support and tailored solutions for specific operational requirements.

By combining their rental fleets and capabilities, GoSubsea and Envirent will enable customers to source more comprehensive equipment packages through a single, streamlined channel - reducing mobilisation timelines and improving operational efficiency across a wide range of offshore projects.

Helge Knutsen, general manager at GoSubsea, commented: “Strengthening our rental capabilities alongside Envirent represents an important milestone in our growth journey. This collaboration allows us to expand our fleet with both subsea and topside tooling, positioning us to deliver more comprehensive and flexible solutions as market demands evolve.”

Oskar Vatland, managing director at Envirent, added, “By combining our expertise and selected equipment portfolios, we are well positioned to deliver innovative solutions to a broader market. Together with GoSubsea, we look forward to providing more complete and future-focused offerings to our customers.”