Saipem wins $3.5bn Saudi Aramco contracts for Berri and Marjan
Italian contractor's latest deals cover engineering and construction work for the Saudi Arabian giant's gas fields
Loss-making Italian engineering, procurement, and construction (EPC) contractor Saipem has won two onshore engineering and construction (E&C) contracts worth $3.5bn (SAR13.1bn) from Saudi Aramco to develop land facilities at its Berri and Marjan gas fields.
The Milan Stock Exchange-listed business said the first contract, called “PKG-01 Expand Abu Ali Crude & KGP Gas Facilities” for the Berri field, involves the installation of process units at the Abu Ali oil-gas separation plant, part of Aramco’s Berri oil field expansion.
The Marjan field contracts involve the construction of a gas treatment unit, and a facility for the recovery of acid gases for sulfur production.
Saipem said the treatment of acid gases would almost completely eliminate the release of sulfur oxides into the environment, adding that more than 99.9% of the gases would be recovered.
Commenting on the contracts, Saipem’s chief executive officer, Stefano Cao, added: “The awarding of these new complex contracts testifies to the evolution of our historic relationship with Saudi Aramco and confirms the strategic positioning of Saipem in the Middle East.
“In the tough context of recent years, Saipem has demonstrated a constant commitment to sustainable economic growth through technological innovation.”
The news comes amid a string of wins at the Italy-based contractor. May 2019 saw it announce two contracts worth $100m for offshore drilling work in Middle East and Norway.
In Q1 2019 alone, the group bagged new contracts worth $2.9bn, three times higher than the $1.1bn of new orders it secured in the first three months of 2018.