Oil & Gas

Saudi Aramco has awarded Italy's Saipem contracts worth USD 500 million to develop two offshore projects in the kingdom, according to a statement obtained by a Washington-based energy platform. The first project involves Saipem handling engineering, procurement, construction, and installation (EPCI) for a 50-kilometer-long, 42-inch diameter oil pipeline for the Abu Safaa field.

The second project focuses on production maintenance programs in the onshore and Manifa fields, as per a statement issued by Saipem on July 15, 2024. Saipem emphasized that securing these projects reinforces its leading position in the Middle East, particularly in the engineering and construction of major energy and infrastructure projects, both offshore and onshore.

In another development, ADES Holding, a prominent drilling services provider for the oil and gas sector, received a long-term contract extension from Saudi Aramco for one of its drilling rigs. ADES, which operates 49 offshore assets including drilling rigs and mobile offshore production units, developed the Admarine 657 platform, initially built in 1980, for a deal worth USD 351 million. This extension, starting in the third quarter of 2024, supports future revenue growth and aligns with the company's strategic objectives amid a tight offshore rig market.

Additionally, Saipem announced a framework agreement with BP Exploration in the Caspian Sea. The agreement involves maritime activities in Azerbaijani waters, utilizing the SCV Khankindi vessel for subsea construction. The services under this agreement are valued at approximately USD 300 million, with Saipem's share being USD 250 million. This contract, with an initial duration of three years and an option for a two-year extension, strengthens Saipem's relationship with BP and confirms its role as a reliable partner for offshore operations and services in the region.