Two Contracts Awarded by Aramco for Offshore Oil and Gas Construction
Oilfield services provider Saipem has secured two offshore contracts with Saudi Aramco worth a combined total of about US$1 billion.
The first contract covers the full engineering, procurement, construction and installation (EPCI) of three production deck modules (PDMs), 33 kilometers of 12-16-inch diameter subsea pipelines and 34 kilometers of subsea power cables, all for installation in the Marjan oil and gas field.
The second contract, for the Zuluf and Safaniyah oilfields, involves the EPCI of three jackets, five PDMs, 22 kilometers of 16-inch diameter subsea rigid pipelines, five kilometers of subsea flexible pipelines and 35 kilometers of subsea power cables.
Saipem will deploy its construction vessels operating in the region for the offshore component of the two projects, while the company’s Saudi fabrication yard, Saipem Taqa Al-Rushaid Fabricators, will house the manufacturing.
“The awards strengthen Saipem’s presence in Saudi Arabia and its longstanding relationship with Aramco,” the Italian firm said.
Italy-headquartered Saipem is involved in the engineering, drilling and construction of projects in the onshore and offshore energy and infrastructure sectors. The company has nine fabrication yards and an offshore fleet of 29 construction vessels – 26 owned and 3 owned by third parties and managed by Saipem – and 15 drilling rigs, of which 8 are owned.
In the first six months of 2024, the company turned over some €6.4 billion, up by 21% compared with the same period last year. Adjusted earnings before interest, tax, depreciation and amortization, or EBITDA, reached €565 million, up by 38 percent.
New contracts awarded in the first half of 2024 totaled €7.1 billion, confirming “strong market demand” for offshore activities and large-scale integrated projects, the company said in its earnings statement.
Saipem is a member of the Breakbulk Global Shipper Network, an extensive networking platform for executives operating at the top end of the project supply chain in sectors such as oil and gas, energy and renewables, mining and minerals, construction, forestry, industrial manufacturing and aerospace.
The next in-person meet-up for BGSN members will be at Breakbulk Americas 2024, taking place on 15-17 October at the George R. Brown Convention Center in Houston, Texas.
