Apr 26 | 2019
Russia, Serbia Contracts Valued at €500 million
Italian oil and gas contractor Saipem has announced new contracts for onshore infrastructure development and construction in Russia and Serbia valued at €500 million.
The Russian contract was signed with operator JSC GazpromNeft Moscow Refinery and covers the engineering, procurement and construction of a new sulphur recovery unit inside the Moscow Refinery.
“The signature of the final EPC contract is expected to take place by the end of the second quarter 2019 on the basis of the main terms and conditions agreed between the parties as an integral part of the same agreement,” a spokesperson for Saipem said.
A separate deal with Serbian developer Infrastructure Development and Construction, or IDC, will see Saipem deliver about 150 kilometers of gas pipeline, with full responsibility for desing and construction as well as installation of the relevant compressor station.
RUB130 billion investment
With a total annual production capacity of 12.15 million tonnes per year, the Moscow Refinery is one of the leading sources of high-quality benzines and diesel fuels, in Russia and meets about 40 percent of local demand for oil products in the Moscow region.
The site is at the center of a major redevelopment, with breakbulk activity expected to continue until 2020, driven by investment of more than RUB130 billion. This program has been directed at improving the quality of the products made at the plant, at improving the depth of refining, and at improving the facility’s efficiency and environmental impact.
“The thoroughgoing reconstruction and refurbishment of the sulfur production facility is among several priority ecological projects at the Moscow Refinery, with plans for a new granulated sulfur facility developed as part of the second phase of the full reconstruction and modernisation of the plant,” aspokesperson for GazpromFeft said.
The new contracts add to a strong orderbook for Saipem, which recently announced a positive outlook for 2019 despite “high volatility in the price of oil” and “the ongoing low level of spending” by oil companies.
For the first quarter of the year, Saipem reported revenues grew to €2.156 billion, up from €1.915 billion in the first quarter of 2018.
“The order backlog at the end of 2018, combined with contract acquisitions in the first quarter and forecasts on current commercial tenders, allow the management to forecast revenues for 2019 of around €9 billion,” the firm reported.
Headquartered in Italy. Saipem provides onshore and offshore breakbulk transport, drilling services, engineering and installation of pipelines and complex projects worldwide.
The Russian contract was signed with operator JSC GazpromNeft Moscow Refinery and covers the engineering, procurement and construction of a new sulphur recovery unit inside the Moscow Refinery.
“The signature of the final EPC contract is expected to take place by the end of the second quarter 2019 on the basis of the main terms and conditions agreed between the parties as an integral part of the same agreement,” a spokesperson for Saipem said.
A separate deal with Serbian developer Infrastructure Development and Construction, or IDC, will see Saipem deliver about 150 kilometers of gas pipeline, with full responsibility for desing and construction as well as installation of the relevant compressor station.
RUB130 billion investment
With a total annual production capacity of 12.15 million tonnes per year, the Moscow Refinery is one of the leading sources of high-quality benzines and diesel fuels, in Russia and meets about 40 percent of local demand for oil products in the Moscow region.
The site is at the center of a major redevelopment, with breakbulk activity expected to continue until 2020, driven by investment of more than RUB130 billion. This program has been directed at improving the quality of the products made at the plant, at improving the depth of refining, and at improving the facility’s efficiency and environmental impact.
“The thoroughgoing reconstruction and refurbishment of the sulfur production facility is among several priority ecological projects at the Moscow Refinery, with plans for a new granulated sulfur facility developed as part of the second phase of the full reconstruction and modernisation of the plant,” aspokesperson for GazpromFeft said.
The new contracts add to a strong orderbook for Saipem, which recently announced a positive outlook for 2019 despite “high volatility in the price of oil” and “the ongoing low level of spending” by oil companies.
For the first quarter of the year, Saipem reported revenues grew to €2.156 billion, up from €1.915 billion in the first quarter of 2018.
“The order backlog at the end of 2018, combined with contract acquisitions in the first quarter and forecasts on current commercial tenders, allow the management to forecast revenues for 2019 of around €9 billion,” the firm reported.
Headquartered in Italy. Saipem provides onshore and offshore breakbulk transport, drilling services, engineering and installation of pipelines and complex projects worldwide.
