Italian energy services contractor Saipem has been awarded an additional offshore contract in Saudi Arabia under its existing long-term agreement with Aramco.
Saipem’s scope of work includes engineering, procurement, construction, and installation of a 48-inch trunkline comprising approximately 65 km offshore and 12 km onshore, along with associated subsea facilities in the Safaniya oil field, one of the world’s largest offshore oil fields. The deal is worth approximately $500m.
Offshore operations will be carried out by Saipem’s construction vessels currently deployed in the region, while fabrication activities will be executed at Saipem’s Saudi fabrication yard, Saipem Taqa Al-Rushaid Fabricators in Dammam.
This new award reinforces Saipem’s long-standing presence in Saudi Arabia. It additionally further consolidates its long-standing relationship with Aramco.
In the spring of 2025, the Saudi giant renewed a long-term agreement with Saipem until 2027. With this renewal, the company is confirmed in the exclusive list of contractors selected by Saudi Aramco, which are eligible to bid for work orders. These contracts may relate to both the construction of new investment projects and any projects aimed at maintaining production capacity from Saudi Arabia’s offshore fields.
In the past two years alone, Aramco has awarded billions in offshore contracts to Saipem. The most recent development between the two companies, however, concerns rig work. In January, Saipem announced that the jackup rig Perro Negro 7 would be restarting operations in Saudi Arabia for Aramco.
The contract for the 2008-built jackup was awarded to Saipem by Saudi Aramco in 2011 and extended in June 2023 for a further 10 years. The contract was suspended for 12 months in 2024. The suspension period will be recovered at the end of the contract, extending its duration until 2034.
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