Saipem lands $750m deals

More deals: For Umberto Vergine-led Saipem

Italian contractor Saipem has landed an engineering and construction contract from the Shah Deniz consortium for work on the South Caucasus Pipeline.

The company will work on the construction and commissioning of the expansion of the pipeline in Azerbaijan and Georgia.

No value was put on the deal, but Saipem said that, taken together with a number of drilling contracts in the Middle East, the contracts are worth around $750 million.

The scope of work for this contract includes the construction of a 428-kilometre pipeline loop and associated installations in both countries. It also includes the construction of a 59-km second pipeline loop and associated above ground installations in Georgia.

“The expanded section of the South Caucasus Pipeline will start approximately 23km from the Sangachal Terminal, located south-west of Baku, in Azerbaijan, and will end in Georgia just south of Tbilisi. The project will be completed by the second quarter of 2018,” Saipem said.

The rig owner also secured a one-year extension for three onshore rigs in the Middle East, starting in the second half of the year. It also penned new five-year contracts for three onshore rigs in the region, starting in the second quarter next year.

Saipem also won an extension for the jack-up Perro Negro 7. Saudi Aramco chartered the rig in late 2011 for shallow-water drilling off Saudi Arabia.

 

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