Saipem wins contracts worth $2bn

Work includes engineering and construction deal from Saudi Aramco

Khurais oil field.
Khurais oil field.

Saipem has been awarded a new engineering and construction contract in Saudi Arabia and new drilling contracts in the Middle East and Latin America worth a total of $2bn.

Saudi Aramco has awarded Saipem an EPC contract relating to the expansion of the onshore production centres at the Khurais, Mazajili and Abu Jifan fields.

The construction of new facilities will allow an additional 300,000 barrels per day to be produced from the Khurais field, while the installation of new satellite facilities will reinstate production of 200,000 barrels per day from the Abu Jifan and Mazalij fields.

The Khurais field is located about 150km northeast of Riyadh and is a giant oil field, 127km long and covering an area of 2890km2.

Saipem previously built the majority of the original Khurais facilities, including the installation of four separation units, all the utilities, the seawater treatment plant and various seawater pipelines.

Umberto Vergine, Saipem’s CEO, said: "This new contract is the result of our successful project delivery in Saudi Arabia and strengthens our relationship with Saudi Aramco, a key client. Saipem is highly committed to the development of the strategic Saudi’s national resources."

In drilling, Saipem has secured a new contract for Perro Negro 7 jack-up, operating offshore in the Middle East, starting from November 2015 until the end of 2018. Perro Negro 7 is a self-elevating drilling unit capable of operating in water depth up to 375ft.

Saipem has also been awarded, by different clients, new contracts relating to nine onshore drilling rigs operating in the Middle East and Latin America. The contracts have been signed under different terms, varying from three months to three years, and starting at different dates during 2014 and 2015. 

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