Saipem secures $2bn worth of engineering and drilling contracts

Italian oil and gas firm Saipem has secured around $2bn worth of engineering, construction and drilling contracts in the Middle East and Latin America.

Saudi Arabia’s state-run oil firm Aramco has awarded Saipem an EPC contract for the expansion of the onshore production centres at the Khurais, Mazajili and Abu Jifan fields.

Located around 150km northeast of Riyadh, the 127km long Khurais field covers an area of 2890 km².

New facilities will allow 300,000 additional barrels to be processed from the Khurais field, while the installation of infrastructure will reinstate production of 200,000 barrels from the Abu Jifan and Mazalij fields.

Saipem CEO Umberto Vergine said: "This new contract is the result of our successful project delivery in Saudi Arabia and strengthens our relationship with Saudi Aramco, a key client. Saipem is highly committed to the development of the strategic Saudi’s national resources."

In drilling, Saipem won a new contract for the Perro Negro 7 jack-up rig operating offshore in the Middle East from November 2015 until the end of 2018.

Saipem has also secured contracts through different clients relating to nine onshore drilling rigs operating in the Middle East and in Latin America.

The contracts, which have been signed under different terms, vary from three months to three years starting at several dates during 2014 and 2015.

Saipem operates in the engineering & construction and drilling businesses, with more focus towards oil & gas-related activities in remote areas and deep-waters.