Saipem scoops Saudi contracts worth US$500mn

Saipem has been awarded two offshore projects in Saudi Arabia, under the existing Long-Term Agreement (LTA) with Saudi Aramco, together amounting to US$500mn

Saipem’s scope of work under the first project involves the Engineering, Procurement, Construction and Installation (EPCI) of a crude trunkline of approximately 50 km with a diameter of 42” for the Abu Safa Field, while the activities related to the second project involve the production maintenance programmes of the Berri and Manifa Fields.

Following the abandonment of its 13mn bpd maximum sustainable capacity (MSC) target earlier this year, Aramco is scaling back new greenfield projects, but is continuing with its already announced crude oil increment and maintenance projects to maintain MSC at 12mn bpd.

The award of these projects further boost Saipem’s strong position in the Middle East, where it won several contracts with Aramco and ADNOC last year. In January this year Saipem announced that it had completed the South Gas Compression Plant Pipelines project, designed to increase the life of a large number of gas wells in the Haradh & Hawiyah fields in Saudi Arabia. The scope of work involved the procurement and construction of around 700km of pipelines. In October 2023, Saipem, with NPCC, netted a US1.4bn contract with ADNOC, for the Hail and Ghasha development project.