Italy’s Saipem has been awarded $650 million worth of contracts to perform engineering, procurement, construction and installation work for an unnamed client in the Middle East region.
The Lombardy-based contracting giant confirmed the new offshore deals on Tuesday, encompassing EPCI for several offshore jackets, decks, subsea pipelines, subsea composite cables, umbilicals, fibre optic cables and brownfield modifications.
Upstream understands the quartet of EPCI awards are from Saudi Aramco, as a part of its long term agreement (LTA) with offshore contractors, although Saipem declined to name the client.
Quartet of awards
Saipem is believed to have won deals for contract release purchase orders 85,91,92,93, sources said.
CRPO 85 includes two new production deck modules, associated subsea pipelines and cables destined for Aramco’s Qatif oilfield.
CRPO 91 involves work on six jackets for the Marjan and Abu Safah oilfields, while CRPO 92 includes the EPCI of two offshore production deck modules for the Marjan and Abu Safah fields.
CRPO 93, comprises the EPCI of at least one sizeable production deck module destined for Safaniyah.
Dishing out contracts
Aramco has been carrying out brownfield and maintenance work at its offshore oil and gas fields through multiple LTA projects, as it aims to maintain their production profile and arrest their decline.
Upstream recently reported Aramco's awarding of multiple EPCI contracts, worth a combined $1.6 billion, to three international contractors or consortia, as a part of the same LTA arrangement.
The winners included Saipem, a pairing of India’s L&T with Subsea 7 and the United Arab Emirates’ National Petroleum Construction Company (NPCC).
Aramco and Saipem declined to comment on Upstream’s requests for additional information about the latest contracts.
In addition to the onshore deals, Saipem said it has been awarded onshore drilling contract extensions in the Middle East for an overall amount of $ 600 million.
“ The awards relate to the 10-year extension of existing contracts regarding four land-rigs located in the Middle East,” it noted.
Saipem said the land rigs, with power ranging from 1500 to 2000 hp will be employed for exploration and production activities in various oil and gas fields, “in continuity with operations under execution in the area.”