Italy’s Saipem wins offshore contract from Saudi Aramco

Firm has also extended its contract on a FPSO vessel, and defined project changes in two regions


Italy-based Saipem has been awarded an engineering and construction (E&C) offshore contract by Saudi Aramco, as per a statement by the firm.

Under the terms of the contract, it will be responsible for engineering, procurement, construction and installation (EPCI) activities, and trunklines and installation (T&I) under a long-term agreement that is valid until 2021.

The EPCI contract pertains to the development of fields in Marjan, Zuluf, Berri, Hasbah, and Safaniya, which are said to be amongst the most important offshore fields in the Arabian Gulf region.

On winning the contract, Stefano Cao, Saipem CEO commented, “With this award, Saipem is further reinforcing its presence (in) a highly strategic area such as the Middle East. The new contracts assigned by a long-standing customer like Saudi Aramco are also a strong and tangible sign of a major client’s trust in Saipem, in the high quality of its services and in the solid expertise the Company can ensure in the construction and installation of offshore platforms”.

Saipem states that it has also come to an agreement regarding an extension of the deployment of floating production storage and offloading (FPSO) vessel Gimboa. The vessel was first built in 1977 and is currently operating in Angola.

The agreement states that Saipem will offer management and maintenance services, personnel, material and consumable supplies for three years, plus one optional year. Saipem has also defined a change in orders for projects in West Africa and in the Caspian Sea, though it has not yet confirmed what those changes are.

All three activities are worth a total of $500m to the company, and will reflect in its second quarter balance sheet.


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